HOUSE OF REPRESENTATIVES

H.B. NO.

2912

TWENTY-FIFTH LEGISLATURE, 2010

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO health care.

 

 

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

 


     SECTION 1.  The legislature finds that in many areas of health care, prevention is more cost effective than treatment.  According to Don Wright, Principal Deputy Assistant Secretary for Health, in testimony before the U.S. Senate Committee on Health, Education, Labor and Pension on December 10, 2008, "[l]argely preventable, chronic diseases have replaced infectious diseases as major killers in the United States.  Chronic diseases cause 7 out of every 10 deaths each year.  We know that 40 percent of deaths are caused by modifiable behaviors, such as poor nutrition, physical inactivity, and tobacco[. . .] The vast majority of health care dollars are spent on direct medical care, despite the fact that clinical care is credited with only 5 of the 30 years that were added to life expectancy during the last century.  Chronic disease consumes more than a trillion dollars a year.  That's three out of every four dollars we spend on health care compared to approximately five percent of total U.S. health care dollars spent on public health and preventive measures."

     The legislature further finds that Medicaid is a very large cost driver in the budget of the State and the Department of Human Services.  In the FY 2011 Supplemental Operating budget, the Med-Quest Division of the Department of Human Services requests over $1.385 billion for its continued operations, and that amount represents a decrease of over $7 million from the previous fiscal year.  Clearly, the funds go to needed and desirable services for members of our community.  The issue is about leveraging the funds we do have to provide health care that improves the quality of life of those receiving it.

     Accordingly, the purpose of this Act is to allow the director of the department of human services to seek a waiver from the Center for Medicare and Medicaid Services to create a pilot program that focuses and incentivizes funding towards prevention of chronic diseases, especially those arising from modifiable behaviors.

     SECTION 2.  The pilot project established by this Act shall be known as the "Healthy Choices" program.

     SECTION 3.  The director of the department of human services is authorized to apply for a waiver from the Center for Medicare and Medicaid Services to create a pilot program that focuses funding towards the prevention of chronic diseases.  The pilot program shall use incentives that differ from current incentives used by the department, including, but not limited to, a combination of a high-deductible catastrophic health insurance policy and health savings accounts with enough flexibility to be used to purchase preventative services that may currently uncovered by conventional health insurance policies or current benefits offered through the Med-Quest Division, such as tobacco cessation programs, nutritional consulting and healthy diet programs, or dental services, so long as the incentives do not violate federal or state laws.  The pilot program shall also primarily address the prevention of chronic diseases arising from modifiable behaviors. The department shall select the participants in the pilot program from those currently receiving services through the Med-Quest Division, and participation in the program shall be voluntary.  The amount of funding for the pilot program shall not exceed the amount of funding that would be spent on services for the participants under the current system of benefits available through the Med-Quest Division.

     SECTION 4.  The department shall compile a report on the results of the program over the first three fiscal years of the voluntary program and shall submit the report to the legislature not later than twenty days prior to the convening of the 2015 Regular Session.  A follow up report shall be submitted to the legislature not later than twenty days prior to the convening of the 2017 Regular Session.  The report shall include, but not be limited to, participation rates, benefits consumed, costs of benefits, financial statements, and money saved.

     SECTION 5.  This Act shall take effect on July 1, 2010, and shall be repealed on June 30, 2018.

 

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Health care

 

Description:

Authorizes the department of human services to seek a waiver from the Center for Medicare and Medicaid Services to enact a pilot program called "Healthy Choices" to focus on the prevention of chronic diseases.

 

 

 

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