STAND. COM. REP. NO. 1103

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 174
                                        




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 H.B. No. 174 entitled: 

     "A BILL FOR AN ACT MAKING AN APPROPRIATION FOR THE
     CHILDREN'S HEALTH INSURANCE PROGRAM,"

begs leave to report as follows:

     The purpose of this measure is to make an appropriation for
the children's health insurance program (CHIP).

     Your Committee received testimony in support of this measure
from the Department of Human Services (DHS), Department of Health
(DOH), Healthcare Association of Hawaii, Hawaii State Primary
Care Association, Waianae Coast Comprehensive Health Center, and
Hawaii Catholic Conference.

     This measure is an outgrowth of the DHS's and DOH's CHIP
planning committee to develop a proposal that was submitted to
the federal Health Care Financing Administration on October 19,
1998, to expand Hawaii's Medicaid and QUEST programs.  The
federal government has allotted Hawaii funds for implementing
CHIP through federal fiscal year 2000, with a further commitment
to fund the program through fiscal year 2008.  However, receipt
of federal funds requires the State to adhere to a thirty-five
per cent state-federal match.  This requires the State to
allocate $4,800,000, to the CHIP initiative in order to secure
the maximum federal match  of $8,900,000.

     As affirmed by the record of votes of the members of your

 
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                                   STAND. COM. REP. NO. 1103
                                   Page 2


Committee on Health and Human Services that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 174 and recommends that it pass Second Reading 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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