STAND. COM. REP. NO. 511

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 866
                                        S.D. 1




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

Sir:

     Your Committee on Health and Human Services, to which was
referred S.B. No. 866 entitled: 

     "A BILL FOR AN ACT MAKING AN APPROPRIATION FOR A
     DEMONSTRATION PROJECT FOR LONG-TERM CARE,"

begs leave to report as follows:

     The purpose of this measure is to make an appropriation for
a demonstration project for long-term care.

     Your Committee received testimony in support of this measure
from the Department of Human Services (DHS), Hawaii Long Term
Care Association, and Aloha Care.

     Your Committee believes that long-term care for Hawaii's
residents is a critical issue due to the increase in the aging
population, shortage of nursing home beds, and fragmentation or
nonexistence of home- and community-based care.  This measure is
a means for the State to examine alternatives to administer long-
term care to provide an effective and affordable system.  This
measure introduces the managed care concept into long-term care,
starting with the Medicaid population.

     Your Committee has amended this measure on the
recommendation of Aloha Care by:

     (1)  Correcting the reference to federal matching funds in
          the purpose section to $40,000 instead of $80,000; and


 
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     (2)  Clarifying that the use of the funds is for a Medicaid
          managed long-term care demonstration project.

     Your Committee has also made technical, nonsubstantive
amendments for purposes of clarity and style.

     As affirmed by the record of votes of the members of your
Committee on Health and Human Services that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 866, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 866,
S.D. 1, and be referred to the Committee on Ways and Means.

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



                                   ______________________________
                                   SUZANNE CHUN OAKLAND, Chair

 
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