STAND. COM. REP. NO.217

Honolulu, Hawaii

, 2001

RE: S.B. No. 654

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Health and Human Services, to which was referred S.B. No. 654 entitled:

"A BILL FOR AN ACT RELATING TO MEDICAID,"

begs leave to report as follows:

The purpose of this measure is to increase Medicaid payments for services provided by health care providers to amounts sufficient to cover the actual costs of the services.

Your Committee received testimony in favor of this measure from The Kokua Council, Beverly Healthcare, Island Nursing Home, Academy Foot Center of Hawaii, Inc., Ann Pearl Nursing Facility, The Queen's Medical Center, Pearl City Nursing Home, Healthcare Association of Hawaii, Wahiawa General Hospital, Hawaii Health Systems Corporation, Leeward Integrated Health Services, Aloha Nursing & Rehab Centre, and Hawaii Long Term Care Association. Your Committee received testimony in opposition to this measure from the Department of Human Services.

Your Committee finds that health care providers, including hospitals, long-term care facilities, and non-institutional providers are facing financial difficulties due to the high cost of providing health care services. The majority of long-term care residents are covered by the Medicaid program. However, the current amount of the Medicaid payment rates do not sufficiently cover the actual cost of providing long-term care which, in turn, jeopardizes the financial solvency of the provider. By adjusting the Medicaid payment rates as provided in this measure, long-term care and other providers to Medicaid recipients will be able to recoup the actual cost of their services.

Your Committee has amended this measure by:

(1) Deleting the language prohibiting the deletion of any item from the QUEST formulary unless it has been shown to be ineffective;

(2) Deleting the requirement that the Department of Human Services submit a report to the Legislature;

(3) Increasing the appropriation to be used for one-half of the DRI inflation factor and for the return on equity for health care payments for the aged, blind, and disabled Medicaid recipients; and

(4) Making technical, nonsubstantive changes for purposes of clarity and style.

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. 654, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 654, S.D. 1, 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,

____________________________

DAVID MATSUURA, Chair