STAND. COM. REP. NO. 1150-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2858
                                     S.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No.
2858, S.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 bill is to make an emergency
appropriation of $4,075,000 in general funds and $4,243,025 in
federal funds to enable the Department of Human Services (DHS) to
reimburse health care providers serving the aged, blind, and
disabled.

     Testimony in support of this bill was submitted by DHS,
Healthcare Association of Hawaii, and Hawaii Long Term Care
Association.

     DHS testified that it will not be able to meet its fiscal
obligations to provide health care services to Medicaid
recipients because the Medicaid program will expend all
appropriated funds before the end of the current fiscal year.
According to DHS, increases in utilization and cost of
prescription drugs have contributed to this budget shortfall.

     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
2858, S.D. 1, and recommends that it pass Second Reading and be
placed on the calendar for Third Reading.

 
 
                                 STAND. COM. REP. NO. 1150-00
                                 Page 2

 
                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Finance,



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair