Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 636, H.D. 1, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to allow the Department of Human Services to establish a Medicaid fee schedule.

More specifically, the bill authorizes 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.

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.

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 H.B. No. 636, H.D. 1, S.D. 1, and recommends that it pass Third Reading.