Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committees on Health and Human Services and Housing, to which was referred H.R. No. 139 entitled:

beg leave to report as follows:

The purpose of this resolution is to urge the United States Congress and the Health Care Financing Administration to adjust Hawaii's aeromedical reimbursement rates by providing for immediate phase-in of the proposed Medicare fee schedule.

The Department of Health and Hawaii Air Ambulance (HAA) submitted testimony in support of this measure.

Your Committees note that Hawaii's Medicare reimbursement rates are based on a formula which differs from the rest of the nation with rates set by the airports to which the service flies. Your Committees also note that the Bush administration has put a freeze on all new rule changes, affecting the new fee schedule which was to go into effect this year.

Your Committees recognize that HAA provides a valuable service and is the only capable aeromedical transportation service in the State. Furthermore, your Committees note that at the present Medicare rates, HAA is barely covering its operational costs and may not be able to provide this service much longer if this trend continues.

As affirmed by the records of votes of the members of your Committees on Health and Human Services and Housing that are attached to this report, your Committees concur with the intent and purpose of H.R. No. 139 and recommend that be referred to the Committee on Finance.