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HOUSE OF REPRESENTATIVES             H.R. NO.              
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                     HOUSE  RESOLUTION
  REQUESTING THE DEPARTMENT OF LABOR AND INDUSTRIAL RELATIONS TO
    STUDY THE FEASIBILITY OF ESTABLISHING A UNIVERSAL MEDICAL
    FEE SCHEDULE FOR THE PREPAID HEALTH INSURANCE SYSTEM, THE
    MEDICAL PORTION OF THE NO-FAULT AUTOMOBILE INSURANCE
    SYSTEM, AND THE MEDICAL PORTION OF THE WORKERS'
    COMPENSATION INSURANCE SYSTEM IN HAWAII.


 1        WHEREAS, in Hawaii, health care financing is fragmented
 2   and complex where separate, parallel, and often duplicative
 3   insurance systems exist, for example, mandatory prepaid health
 4   care insurance for employees, workers' compensation, and no-
 5   fault automobile insurance for drivers; and
 6   
 7        WHEREAS, three different medical fee schedules are in
 8   operation in Hawaii for these three different insurance systems
 9   even though the medical services, treatment, or care being
10   provided are either identical or similar in nature; and
11   
12        WHEREAS, the medical fee schedule under the medical
13   insurance portion of no-fault automobile insurance is higher
14   than the fee schedule under the employer-based prepaid health
15   care insurance system; and
16   
17        WHEREAS, workers' compensation is similarly duplicative,
18   especially for the majority of health benefits that are offered
19   under employees' regular prepaid health plans; and
20   
21        WHEREAS, fully forty per cent of workers' compensation
22   payments are made for medical claims; and
23   
24        WHEREAS, there is no reason why the cost of treating an
25   injury or illness, regardless of the cause, should be different
26   merely because the type of insurance system under which
27   providers are paid are different; and
28   
29        WHEREAS, the three separate medical fee schedules used to
30   pay providers under the prepaid health insurance system, the
31   medical portion of the no-fault automobile insurance system,
32   and the medical portion of the workers' compensation insurance
33   system should be consolidated into one universal medical fee
34   schedule; and
35   
36        WHEREAS, the establishment of this universal medical fee
37   schedule does not require an insurer under any of the three

 
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                                  H.R. NO.              
                                                        
                                                        


 1   insurance systems to cover medical benefits that it does not
 2   already provide -- the universal medical fee schedule merely
 3   provides one single comprehensive set of payments for medical
 4   services, treatment, and care that an insurer provides under
 5   any insurance system; and
 6   
 7        WHEREAS, the cost of health insurance is a significant
 8   contributor to the cost of living in Hawaii and every effort
 9   should be made to streamline and consolidate medical fee
10   schedules paid for the same treatment, care, or service
11   provided under either prepaid health insurance, the medical
12   portion of no-fault automobile insurance, or the medical
13   portion of workers' compensation insurance; and
14   
15        WHEREAS, the Department of Labor and Industrial Relations,
16   as the agency responsible for administering both the workers'
17   compensation law and the prepaid health care law has extensive
18   familiarity with the operation of the workers' compensation fee
19   schedule, which is the starting point for any universal fee
20   schedule; now, therefore,
21   
22        BE IT RESOLVED by the House of Representatives of the
23   Twentieth Legislature of the State of Hawaii, Regular Session
24   of 2000, that the Department of Labor and Industrial Relations
25   is requested to study the feasibility of establishing one
26   universal medical fee schedule for the prepaid health insurance
27   system, the medical portion of the no-fault automobile
28   insurance system, and the medical portion of the workers'
29   compensation insurance system in Hawaii; and
30   
31        BE IT FURTHER RESOLVED that, if the Department of Labor
32   and Industrial Relations finds that it is feasible to implement
33   a universal medical fee schedule in Hawaii, the Department is
34   requested to include in its report, to the extent possible, a
35   suggested model universal medical fee schedule; and
36   
37        BE IT FURTHER RESOLVED that the Department of Labor and
38   Industrial Relations is requested to submit a report to the
39   Legislature no later than twenty days prior to the convening of
40   the Regular Session of 2001; and
41   
42        BE IT FURTHER RESOLVED that certified copies of this
43   Resolution be transmitted to the Director of Labor and
44   Industrial Relations, the Director of Commerce and Consumer
45   Affairs, and the Insurance Commissioner.
46   
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50                         OFFERED BY:  ____________________________