STAND. COM. REP. NO. 25-24

Honolulu, Hawaii

, 2024

RE: H.B. No. 1686

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Labor & Government Operations, to which was referred H.B. No. 1686 entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

The purpose of this measure is to require that the charges for chiropractic treatments for personal injury protection benefits under motor vehicle insurance be tied to the charges, and any subsequent increases in charges, permissible under the workers' compensation supplemental medical fee schedule.

Your Committee received testimony in support of this measure from the Hawaii State Chiropractic Association and numerous individuals. Your Committee received testimony in opposition to this measure from the American Property Casualty Insurance Association. Your Committee received comments on this measure from the Department of Commerce and Consumer Affairs and Hawaii Insurers Council.

Your Committee finds that existing motor vehicle insurance law ensures that individuals injured in automobile accidents can seek a variety of treatments to aid in recovery from injuries, including chiropractic and acupuncture treatments. While the authorized benefit for acupuncture treatments is tied to the charges, and any subsequent increases in charges, permissible under the workers' compensation supplemental medical fee schedule, the authorized benefit allowed for chiropractic treatments has not been adjusted. Increasing the chiropractic reimbursement rate under motor vehicle insurance ensures fair and accessible health care and improved public health and wellness.

Your Committee is concerned that the measure, as originally drafted, will increase motor vehicle insurance rates significantly.

Accordingly, your Committee has amended this measure by:

(1) Deleting language that would have required the charges for chiropractic treatments for personal injury protection benefits under motor vehicle insurance to be tied to the charges, and any subsequent increases in charges, permissible under the workers' compensation supplemental medical fee schedule;

(2) Increasing the reimbursement for chiropractic treatments from $75 to $100 a visit;

(3) Changing the effective date to July 1, 3000, to encourage further discussion; and

(4) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Labor & Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1686, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1686, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Labor & Government Operations,

____________________________

SCOT Z. MATAYOSHI, Chair