HOUSE OF REPRESENTATIVES

H.B. NO.

730

TWENTY-SIXTH LEGISLATURE, 2011

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to universal children's savings accounts.

 

 

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

 


PART I

     SECTION 1.  The legislature finds that figures from the United States Census Bureau report that the State of Hawaii is facing its third consecutive year with an increase in impoverished residents.  The poverty rate in Hawaii rose to over twelve per cent in 2009, with more than 156,000 people living below the poverty line.  The poverty rate in 2009 was the highest in Hawaii since 1997, when the poverty rate stood at nearly fourteen per cent.

     The legislature finds that nearly thirty per cent of households headed by a single woman are in poverty.  Poverty is a cyclical problem, passing from generation to generation.  It is more likely that children being raised in poverty by single mothers will remain in poverty throughout their lives.

     The legislature also finds that the rate of family savings is the lowest that it has been since the Great Depression.  Research indicates that twenty-five per cent of households in Hawaii are "asset poor", meaning those households do not have enough wealth to meet basic needs for a limited period of time.

     The legislature also finds that a study conducted by the Center for Social Development at Washington University in St. Louis found that students with savings are significantly more likely to pursue a higher education.  Additionally, when savings were taken into account, academic achievement was no longer a significant predictor of college attendance.

     The legislature finds that healthy children and adults are less likely to live in poverty.  Poor health practices in a child's developmental stages can lead to an unhealthy lifestyle as an adult, including conditions or habits such as obesity, smoking, alcoholism, and substance abuse.  Children with unhealthy practices are less likely to pursue higher education.  It is imperative to infuse healthy behavior into the lives of Hawaii's youth to increase the chances of having a healthier Hawaii.

     The legislature finds that the early periodic screening, diagnosis, and treatment program is a federally mandated set of services and benefits for all individuals under age twenty-one who are enrolled in medicaid.  All medically necessary diagnostic and treatment services within the federal definition of medicaid medical assistance must be covered, regardless of whether those services are otherwise covered under a state medicaid plan.

     The legislature also finds that health screening initiatives under the child's health insurance program are activities that promote public health, promote individual health, improve or promote a state's capacity to deliver public health services, or strengthen the human and material resources necessary to accomplish public health goals.  Health screening initiatives must be related to improving the health of children, including targeted and other low-income children.  Health screening initiatives under the child's health insurance program are a mechanism for states to get creative and utilize more federal funding.  However, no more than ten per cent of a state's administrative costs may fund the child's health insurance program.

     The purpose of this Act is to establish a universal children's savings account pilot project for medicaid-eligible children who are enrolled in Hawaii's QUEST program.

PART II

     SECTION 2.  (a)  There is established a universal children's savings account pilot project within the department of human services for administrative purposes.

     (b)  The department shall apply with the United States Centers for Medicare and Medicaid Services to launch a health services initiative under the children's health insurance program.  Under this program the department shall:

     (1)  Establish a children's savings account for every medicaid-eligible child born between July 1, 2011, to June 30, 2012, up to age five, who is enrolled in the State of Hawaii's QUEST program;

     (2)  Add a contribution amount to an eligible child's savings account, following the child's early periodic screening, diagnosis, and treatment program visits;

     (3)  Develop and foster public-private partnerships in the community, in order to increase the contribution amount for each eligible child's savings account;

     (4)  Promote and educate eligible children and their families on the importance of annual health visits in order to encourage healthier lifestyles and practices; and

     (5)  Promote and educate eligible children and their families on the importance of developing a savings account.

     (c)  Eligible children shall not have access to the funds in the universal children's savings accounts until they reach eighteen years of age.

     (d)  Funds in universal children's savings accounts shall be used only for health-related purposes.

     (e)  The department may hire staff or contract with an outside third party to administer this program.

     SECTION 3.  The department shall submit a report to the legislature no later than twenty days prior to the convening of the 2012 regular session, which shall include:

     (1)  The status of the universal children's savings account pilot project request with the United States Centers for Medicare and Medicaid Services;

     (2)  The number of savings accounts opened for eligible children;

     (3)  The total dollar amount necessary to open a savings account for each eligible child;

     (4)  The budgeted dollar amount for each matching contribution in the year immediately following an early periodic screening, diagnosis, and treatment program visit for every eligible child;

     (5)  The number of staff hired;

     (6)  The name of any third party administrator contracted to administer the pilot project, and the total dollar amount of the contract;

     (7)  The number and names of any private sector or non-profit partnerships established to support the pilot project;

     (8)  Any obstacles or challenges that were encountered; and

     (9)  Any other relevant information pertinent to the implementation and execution of the pilot project.

     SECTION 4.  This Act shall take effect upon its approval; provided that this Act shall be repealed on December 31, 2030.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Universal Children's Savings Account Pilot Project; QUEST

 

Description:

Creates a universal children's savings account pilot project under the department of human services, open to medicaid-eligible children enrolled in the QUEST program.  Repeals 12/31/30.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.