STAND. COM. REP. NO. 131

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 423

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

 

Madam:

 

     Your Committees on Human Services and Health, to which was referred S.B. No. 423 entitled:

 

"A BILL FOR AN ACT RELATING TO HEALTH,"

 

beg leave to report as follows:

 

     The purpose of this measure is to appropriate state funds to maximize the availability of the federal Medicaid disproportionate share hospital allowance.

 

     Testimony in support of this measure was received from the Chamber of Commerce of Hawaii, Hawaii Pacific Health, Kaiser Permanente, AARP Hawaii, and the Healthcare Association of Hawaii.  The Department of Human Services submitted testimony in opposition to this measure.  Copies of written testimony are available for review on the Legislature's website.

 

     Your Committees find that it is imperative to provide quality healthcare for the State's most vulnerable populations.  Through the efforts of Hawaii's congressional delegation, a one-time federal Medicaid disproportionate share hospital allowance has been secured for the State.  The disproportionate share hospital allowance is intended to compensate hospitals for higher operating costs incurred as a result of treating a large share of low-income patients.

 

     Your Committees further find that the disproportionate share hospital allowance funds cannot be expended without a matching state appropriation.  By appropriating the state funds necessary to maximize the availability of the federal disproportionate share hospital allowance, the State will enable healthcare providers to continue offering services to Hawaii's needy population.

 

     As affirmed by the records of votes of the members of your Committees on Human Services and Health that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 423 and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.

 

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

 

____________________________

DAVID Y. IGE, Chair

 

____________________________

SUZANNE CHUN OAKLAND, Chair