STAND. COM. REP. NO. 3217

Honolulu, Hawaii

RE: H.B. No. 1686

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Commerce and Consumer Protection, to which was referred H.B. No. 1686, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INSURANCE,"

begs leave to report as follows:

The purpose and intent of this measure is to increase the reimbursement rate for chiropractic treatments for personal injury protection benefits under motor vehicle insurance from $75 to $100.

Your Committee received testimony in support of this measure from the Hawaii State Chiropractic Association; Pearl City Chiropractic, LLC; Tanaka and Associates Chiropractic & Massage, L.L.C.; Eclipse Chiropractic LLC; Turning Point Chiropractic Inc.; Dr. Jill Dawrs Family Chiropractic Clinic; Klein Natural Health and Wellness Center; and thirty individuals.

Your Committee received testimony in opposition to this measure from one individual.

Your Committee received comments on this measure from the Insurance Division of the Department of Commerce and Consumer Affairs and Hawaii Insurers Council.

Your Committee finds that in the nearly three decades since the personal injury protection benefit for chiropractic treatments under motor vehicle insurance was first established pursuant to Act 251, Session Laws of Hawaii 1997, the cost of chiropractic care has continually increased, while the statutory benefit provided has remained unchanged. Therefore, this measure ensures equitable, fair, and accessible chiropractic care for individuals recovering from automobile accidents by increasing the authorized insurance benefit (i.e., reimbursement rates) for chiropractic treatments to align with current costs.

Your Committee has amended this measure by:

(1) Replacing language that would have increased the reimbursement rate for chiropractic treatments for personal injury protection benefits under motor vehicle insurance from $75 to $100 with language that instead ties the authorized insurance benefits to the charges, and any subsequent increases in charges, that are permissible under the workers' compensation supplemental medical fee schedule;

(2) Amending section 1 to reflect its amended purpose;

(3) Inserting an effective date of July 1, 2040, to encourage further discussion; and

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

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

Respectfully submitted on behalf of the members of the Committee on Commerce and Consumer Protection,

________________________________

JARRETT KEOHOKALOLE, Chair