Report Title:

Physicians & Dentists; Deferred Compensation Participation

Description:

Gives private physicians and dentists who treat Medicaid, QUEST, and State's children's health insurance program patients the option to participate in the state employees' deferred compensation plan. Requires board of trustees of the deferred compensation plan to adopt rules to implement the plan.

THE SENATE

S.B. NO.

2584

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to deferred compensation.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that certain segments of Hawaii's population are medically underserved. Specifically, an inadequate number of dentists and physicians voluntarily serve individuals and families who participate in medicaid, the Hawaii QUEST program, and the state children's health insurance program. The purpose of this Act is to employ an innovative incentive to encourage more dentists and physicians to participate and serve this underserved population by allowing a portion of their reimbursement, when treating this underserved population, to be treated as deferred compensation in the state employees' deferred compensation plan.

SECTION 2. Chapter 88E, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§88E- Government contractors; dentists and physicians; optional participation. (a) Any other law to the contrary notwithstanding, a dentist or a physician in this State licensed under chapter 448, or 453, or 460, respectively, who is not an employee of the State, who agrees to treat qualified patients in the State's medicaid programs, the QUEST program, or the State's children's health insurance program and agrees to accept reimbursement from the State for services provided, may elect to participate in the deferred compensation program under this chapter as a government contractor. Only that percentage or amount of compensation received from the State as reimbursement for the treatment of qualified patients, as determined by the board of trustees by rule pursuant to subsection (d), shall be eligible to be deferred.

(b) For the purposes of this section only, unless the context clearly requires otherwise:

"Government contractor" means, for the purposes of this section only, a dentist or physician licensed in this State under chapter 448, or 453, or 460, respectively, who:

(1) Is not an employee of the State;

(2) Agrees to treat qualified patients in the State's medicaid programs, the QUEST program, or the State's children's health insurance program; and

(3) Agrees to accept reimbursement from the State for services provided to these qualified patients.

"Qualified patient" means, for the purposes of this section only, a patient who participates in any of the State's medicaid programs, the QUEST program, or the State's children's health insurance program.

(c) Nothing in this section shall be construed to confer or grant a government contractor any rights, privileges, or standing as an employee of the State other than the specific right to elect to participate in the state employees' deferred compensation plan as described in this section.

(d) The board of trustees of the deferred compensation plan shall adopt rules under chapter 91 to implement the purpose of this section, including:

(1) Setting the percentage or total amount of medicaid reimbursement, or both, received by a government contractor each year that shall be treated as deferred compensation;

(2) Setting the minimum number of qualified patients treated each year; and

(3) Prescribing specific procedures to document and process any claims for deferred compensation made under this section and to identify and account for moneys deferred under this section."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect on July 1, 2004.

INTRODUCED BY:

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