"It's a better version of the Senate bill," said Sen. Rosalyn Baker, (D, West Maui). "The philosophy didn't change." Baker is co-chairwoman of the Senate Consumer Protection committee, which yesterday passed the amended House bill.

The original House bill, which is supported by the Cayetano administration, called for a repeal of the state's 24 year-old no-fault law and would replace it with a tort-based system in which accident victims would sue at-fault drivers for damages. The House plan also shifts medical costs for auto accident injuries to the state's prepaid health care system, which is largely paid for by Hawaii employers.

The Senate version, which attempts to lower premiums between 25 percent and 35 percent, makes the state's prepaid health-care system the basis for covering auto accident victims but advocates say it does not shift costs to employers.

The Senate approach also eliminates the $13,900 medical threshold that accident victims need to reach before suing and replaces it with what's known as a "verbal threshold." A verbal threshold, modeled after Michigan's no-fault law, allows accident victims to sue for pain and suffering only in cases of serious or permanent injuries.

The amendments came after insurance companies and business leaders testified against the original House plan, saying it could raise premiums and not lower them.

Local attorneys and consumer groups have supported a repeal of the state's no-fault law, which they said forces good drivers to pay for bad drivers.

AIG Hawaii Insurance Co. last week said its analysis shows that the original House bill would lower premiums by 3 percent at best and, at worst, increase costs by 20 percent.

The original House plan also received criticism from Hawaii's business community, who said that at the measure shifts costs for treating auto accidents to employers, who already are struggling due to the soft isle economy.

The Senate's version of no-fault reform has not been heard yet in the House. Once the Senate and House pass reform bills, the two sides will meet in conference committee to work out a compromise.