STAND. COM. REP. NO. _________

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2858
                                        




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Health and Human Services, to which was
referred S.B. No. 2858 entitled: 

     "A BILL FOR AN ACT MAKING AN EMERGENCY APPROPRIATION FOR THE
     STATE MEDICAL ASSISTANCE PROGRAM,"

begs leave to report as follows:

     The purpose of this measure is to make an emergency
appropriation for the state medical assistance program.

     Your Committee received testimony in support of this measure
from the Department of Human Services, Healthcare Association of
Hawaii, Legal Aid Society of Hawaii, and Hawaii Long Term Care
Association.

     Your Committee finds that a critical emergency exists in the
funding of the medical assistance program serving the aged,
blind, and disabled populations.  There has been an unanticipated
increase in costs for nursing facility care and in the cost of
new pharmaceutical drugs.  This measure is necessary to prevent a
reduction or discontinuance of direct medical services for
Medicaid recipients.

     The emergency appropriation in this measure will enable the
continuance of reimbursements to Medicaid health care providers,
such as hospitals, nursing facilities, pharmacists, clinics,
medical suppliers, and individual practitioners who service
Medicaid recipients.


 
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     As affirmed by the record of votes of the members of your
Committee on Health and Human Services that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 2858 and recommends that it pass Second Reading and
be referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Health and Human
                                   Services,



                                   ______________________________
                                   SUZANNE CHUN OAKLAND, Chair

 
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