STAND. COM. REP. NO.357-02

Honolulu, Hawaii

, 2002

RE: H.B. No. 2239

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committees on Health and Human Services and Housing, to which was referred H.B. No. 2239 entitled:

"A BILL FOR AN ACT RELATING TO MEDICAID,"

beg leave to report as follows:

The purpose of this bill is to address the financial crisis faced by Medicaid and QUEST providers because of inadequate reimbursement rates by:

(1) Requiring the Department of Human Services (DHS) to abstain from implementing certain Medicaid plan amendments; and

(2) Appropriating funds to bring reimbursements to providers closer to the actual costs of care.

Hawaii Primary Care Association, Hawaii Health Systems Corporation (HHSC), Hawaii Long Term Care Association, Hawaii Psychiatric Medical Association, Healthcare Association of Hawaii, and the Hawaii Medical Association testified in support of this measure. DHS submitted comments.

Your Committees find that Medicaid and QUEST providers are facing a severe financial crisis due to inadequate reimbursement for services. Many providers are on the brink of closing their operations or are just barely getting by because reimbursement amounts do not cover the cost of care.

Your Committees note that several providers testified that this is the most important issue for them at this time. HHSC testified that they lose over $30,000,000 per year by participating in Medicaid, Medicare, and QUEST, and that the losses are expected to worsen as reimbursements continue to be constrained.

Your Committees have amended this bill by:

(1) Adjusting the amount of federal funds required for reimbursements for aged, blind, and disabled Medicaid recipients to $6,200,000;

(2) Adjusting the amount of general funds required for QUEST reimbursements to $4,739,000;

(3) Adjusting the amount of federal funds required for QUEST reimbursements to $6,268,624; and

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

As affirmed by the records of votes of the members of your Committees on Health and Human Services and Housing that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2239, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2239, H.D. 1, and be referred to the Committee on Finance.

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

 

____________________________

MICHAEL P. KAHIKINA, Chair

____________________________

DENNIS A. ARAKAKI, Chair