STAND. COM. REP. NO. 2813

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2517
                                        H.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Health and Human Services, to which was
referred H.B. No. 2517, H.D. 1, entitled: 

     "A BILL FOR AN ACT MAKING AN EMERGENCY APPROPRIATION FOR THE
     STATE MEDICAL ASSISTANCE PROGRAM,"

begs leave to report as follows:

     The purpose of this measure is to make an emergency
appropriation for the state medical assistance program.

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

     Your Committee finds that a critical emergency exists in the
funding of the medical assistance program serving the aged,
blind, and disabled populations.  There has been an unanticipated
increase in costs from nursing facility care and in the cost of
new pharmaceutical drugs.  The increase reflects an unusually
high escalation over last year's budget.  This measure is
necessary to prevent a reduction or discontinuance of direct
medical services for Medicaid recipients.

     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 H.B. No. 2517, H.D. 1, and recommends that it pass Second
Reading and be referred to the Committee on Ways and Means.


 
a                                                     HB2517 HD1
                                                      
                                   STAND. COM. REP. NO. 2813
                                   Page 2


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



                                   ______________________________
                                   SUZANNE CHUN OAKLAND, Chair

 
a                                                     HB2517 HD1