STAND. COM. REP. NO. 227

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 918

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

 

Madam:

 

     Your Committee on Human Services, to which was referred S.B. No. 918 entitled:

 

"A BILL FOR AN ACT RELATING TO MEDICAID LIENS,"

 

begs leave to report as follows:

 

     The purpose of this measure is to clarify existing law so that the notice of intent to place a lien on the real property of a Medicaid recipient will be valid if provided to the recipient or the recipient's legal representative, surviving spouse, child, or designated representative.

 

     Testimony in support of this measure was submitted by the Department of Human Services and the Department of the Attorney General.  Testimony in opposition to this measure was submitted by the Statewide Independent Living Council.  Written testimony presented to the Committee may be reviewed on the Legislature's website.

 

     Your Committee finds that the Department of Human Services is required to place a lien on the real property of Medicaid recipients in nursing homes under certain circumstances, to secure recovery of Medicaid payments from the recipient's estate.  Section 346‑29, Hawaii Revised Statutes, allows applications for public assistance to be made by the applicant or a person acting on the applicant's behalf.

 

     Your Committee also finds that the Department of Human Services has frequently encountered problems placing liens and filing claims because people claim that a legal representative must receive the notice of intent to place a lien in order for the notice to be valid, and a legal representative is often difficult to locate.

 

     Your Committee believes that this measure will provide greater flexibility in the law to allow recipients' designated representatives, spouses, and children to represent recipients in the lien process; thereby allowing the State to recover Medicaid payments from recipients' estates.

 

     As affirmed by the record of votes of the members of your Committee on Human Services that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 918 and recommends that it pass Second Reading and be referred to the Committee on Judiciary and Government Operations.

 

Respectfully submitted on behalf of the members of the Committee on Human Services,

 

 

 

____________________________

SUZANNE CHUN OAKLAND, Chair