Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Human Services and Housing, to which was referred H.B. No. 636 entitled:

begs leave to report as follows:

The purpose of this bill is to revise the Department of Human Services' current method of reimbursement to noninstitutional providers of medical care, which is based on the changes of specialty providers, to a rate system established by a fee schedule.

The Department of Human Services testified in support of this bill.

Your Committee finds that the current method of reimbursing noninstitutional providers is too cumbersome and difficult to manage. The Hawaii Medicaid Fee Schedule established in this bill would maintain reimbursement rates according to services provided, instead of provider changes by specialty. This fee schedule will simplify claims processing and result in more timely and accurate payments to providers.

As affirmed by the record of votes of the members of your Committee on Human Services and Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 636 and recommends that it pass Second Reading and be referred to the Committee on Finance.