STAND. COM. REP. NO. 1775

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.C.R. No. 219
                                        




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. 219 entitled: 

     "HOUSE CONCURRENT RESOLUTION URGING THE UNITED STATES
     CONGRESS, THE PRESIDENT OF THE UNITED STATES, AND THE
     SECRETARY OF HEALTH AND HUMAN SERVICES TO SUPPORT THE HAWAII
     CONGRESSIONAL DELEGATION'S EFFORT TO AMEND THE SOCIAL
     SECURITY ACT TO INCREASE HAWAII'S FEDERAL MEDICAL ASSISTANCE
     PERCENTAGE (FMAP),"
 
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 Health and Human Services to support the Hawaii congressional
delegation's effort to amend the Social Security Act to increase
Hawaii's Federal Medical Assistance Percentage (FMAP).

     The federal government bases its payment to states for the
Medicaid program on FMAP, which is a formula that yields the per
capita income for a state.  However, Hawaii's inordinately high
cost of living is not reflected in FMAP.  This measure requests
support to change the FMAP formula for Hawaii, which would result
in Hawaii receiving more Medicaid funds from the federal
government.

     Testimony in support of this measure was received from the
Department of Accounting and General Services (DAGS), the
Department of Human Services (DHS), the State Planning Council on

 
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                                   STAND. COM. REP. NO. 1775
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Developmental Disabilities, and the Hawaii Long Term Care
Association.

     According to DAGS, the State currently recovers about $20
million under FMAP.  An increase in the FMAP rate for Hawaii
would bring in additional federal dollars of about $7 million per
year for each percentage point increase.  Your Committees believe
that the State stands to gain a substantial amount of federal
money through an increase in the FMAP rate for Hawaii.

     According to DHS, the increase in federal moneys for Hawaii
would partially off-set the anticipated cutback in federal
funding due to the Balanced Budget Act of 1997.  This is
estimated to be a reduction of twenty-nine per cent in the next
five years which would require additional general funds to
maintain levels of services required for adequate health care.

     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. 219
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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