STAND. COM. REP. NO. 2766

                                   Honolulu, Hawaii
                                                     , 2000

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




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

Sir:

     Your Committee on Ways and Means, to which was referred S.B.
No. 2858 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 for the state medical assistance program.

     Specifically, the bill appropriates $4,075,000 in general
funds and $4,243,025 in other federal funds for fiscal year 1999-
2000 to be used for health care payments for aged, blind, and
disabled Medicaid recipients.

     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 for nursing facility care and in the cost of
new pharmaceutical drugs.  This measure is necessary to prevent a
reduction or discontinuance of direct medical services for
Medicaid recipients.

     The emergency appropriation will enable the continuance of
reimbursements to Medicaid health care providers, such as
hospitals, nursing facilities, pharmacists, clinics, medical

 
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                                   STAND. COM. REP. NO. 2766
                                   Page 2


suppliers, and individual practitioners who service Medicaid
recipients.

     Your Committee has made a technical nonsubstantive amendment
for purpose of clarity and style.

     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.
2858, as amended herein,  and recommends that it pass Third
Reading in the form attached hereto as S.B. No. 2858, S.D. 1.

                                 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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