STAND. COM. REP. NO. 1562

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 1726
                                        H.D. 1
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B.
No. 1726, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO FAMILY HEALTH SERVICES,"

begs leave to report as follows:

     The purpose of this bill is to provide necessary funds to
enable the Department of Human Services to raise the income
eligibility level for the medically needy program.

     To achieve this goal, this bill appropriates $1 to the
Department of Human Services in order to raise the income
eligibility level for the medically needy program to one hundred
thirty-three per cent of the assistance allowance.

     The Medicaid program allows a state to expand coverage to
persons whose incomes are above the Medicaid income level but are
still low and are deemed "medically needy."  The Department has
the authority to establish the income eligibility level for the
medically needy program at one hundred thirty-three per cent of
the assistance allowance, subject to appropriation of state funds
along with federal matching assistance.  This measure will allow
the Department to implement the new higher income eligibility
level and provide services to a greater number of financially and
medically needy individuals.


 
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                                   STAND. COM. REP. NO. 1562
                                   Page 2


     Upon further consideration, your Committee has amended this
bill by:

     (1)  Amending the appropriated amount of $1 to $2; and

     (2)  Changing the effective date from July 1, 1999 to
          July 1, 2003;

for purposes of promoting further discussion.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
1726, H.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as H.B. No. 1726, H.D.
1, S.D. 1.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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