Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Health and Human Services, to which was referred H.B. No. 636, H.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to allow the Department of Human Services to change its current method of reimbursement to noninstitutional providers of medical care from the customary methodology based on the charges of providers in a specialty to rates established by a fee schedule.

Testimony in support of this measure was submitted by the Department of Human Services, Hawaii Medical Association, and the Hawaii Nurses' Association.

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 measure would maintain reimbursement rates according to services provided, instead of provider charges by specialty. Thus, your Committee believes that this measure will greatly simplify the processing of claims, and result in more timely and accurate payments to providers.

Your Committee has amended this measure by replacing its contents with the contents of S.B. No. 1111, S.D. 1, which are substantively similar, except for technical differences.

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. 636, H.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 636, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.