STAND. COM. REP. NO. 1776

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.C.R. No. 203
                                        




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

Sir:

     Your Committees on Health and Human Services and
Transportation and Intergovernmental Affairs, to which was
referred H.C.R. No. 203 entitled: 

     "HOUSE CONCURRENT RESOLUTION URGING THE UNITED STATES
     CONGRESS, THE PRESIDENT OF THE UNITED STATES, AND THE
     SECRETARY OF THE DEPARTMENT OF HEALTH AND HUMAN SERVICES TO
     SUPPORT HAWAII'S CONGRESSIONAL DELEGATION'S EFFORT TO AMEND
     THE SOCIAL SECURITY ACT,"

beg leave to report as follows:

     The purpose of this measure is to urge the United States
Congress, the President of the United States, and the Secretary
of the Department of Health and Human Services to support
Hawaii's congressional delegation's efforts to amend the Social
Security Act.

     The intent of this measure is to reduce the administrative
service fee that the State is required to pay the Social Security
Administration for the processing of Supplemental Security Income
for the Aged, Blind, and Disabled (SSI).  For fiscal year 1999,
Hawaii is paying $7.60 to issue a supplement of $4.90.  The State
must continue to pay this fee to avoid jeopardizing Medicaid
reimbursements from the federal government.  An amendment to the
Social Security Act would:

     (1)  Allow Hawaii to not issue a state supplement for SSI;


 
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     (2)  Limit the cost of the administrative fee to a maximum
          amount;

     (3)  Prohibit an increase in the fee without any increase in
          services; and

     (4)  Allow Hawaii to contract for processing state
          supplements for SSI to a private vendor without being
          penalized by decreasing the assistance to the Federal
          Benefit Rate only.

     Testimony strongly supporting this measure was received from
the Department of Human Services.

     As affirmed by the records of votes of the members of your
Committees on Health and Human Services and Transportation and
Intergovernmental Affairs that are attached to this report, your
Committees concur with the intent and purpose of H.C.R. No. 203
and recommend its adoption.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Health and Human
                                   Services and Transportation
                                   and Intergovernmental Affairs,



_____________________________      ______________________________
CAL KAWAMOTO, Chair                SUZANNE CHUN OAKLAND, Chair

 
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