Hawaii: Workers’ Comp Bill of Concern Amended, Passes Out of Committee

The House Committee on Labor and Government Operations held a public hearing Jan. 30 on a workers’ compensation bill of concern. HB 1637 states that an injured employee’s private health care plan must by default pay or provide medical care, services, and supplies pending acceptance of the claim or determination of compensability and may seek reimbursement from the employer if accepted or compensable. The bill was amended and passed out of committee. The legislation is triple assigned so the bill must also pass out of the House Consumer Protection Committee and House Finance Committee.

The concerning part of the bill is the subrogation right the health carrier has against the employer and the health carriers right to also collect an administrative fee of equal to 3 percent of the total amount paid by the private health care plan. The bill would also require employer payment of the injured employee’s out-of-pocket medical expenses, such as co-payments, related to the injury.

The legislation clarifies that with controverted claims, an injured employee’s private health care plan must by default pay or provide medical care, services, and supplies pending acceptance of the claim or determination of compensability and may seek reimbursement from the employer if accepted or compensable.

NAMIC shared concerns with bill sponsor and several committee members before hearing and will continue to actively lobby in opposition to bill in conjunction with trade colleagues.