STAND. COM. REP. NO. 809

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 866
                                        S.D. 2




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

Sir:

     Your Committee on Ways and Means, to which was referred S.B.
No. 866, S.D. 1, 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 bill is to make an appropriation for a
Medicaid managed care long-term care demonstration project.

     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 bill is a
means for the State to examine alternatives to administer long-
term care to provide an effective and affordable system.  This
bill introduces the managed care concept into long-term care,
starting with the Medicaid population.

     Upon further consideration, your Committee has amended this
bill by deleting the appropriation amount in section 2 of the
bill for the purpose of promoting further discussion.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.

 
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                                   STAND. COM. REP. NO. 809
                                   Page 2


866, S.D. 1, as amended herein, and recommends that it pass Third
Reading in the form attached hereto as S.B. No. 866, S.D. 2.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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