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 S.B. No. 1338 entitled:

begs leave to report as follows:

The purpose of this measure is to increase reimbursement rates to dentist to up 75% of usual, customary, and reasonable fees for Medicaid patients, and appropriates moneys to the Department of Human Services. This measure also requires the Department of Human Services to standardize forms and report to the governor and legislature by September 1, 2001.

Testimony in support of this measure was submitted by the Hawaii Primary Care Association, Hawaii Dental Association, and a private dentist. The Department of Human Services supports the intent but opposes the manner by which the increase is being imposed.

Your Committee recognizes that one of the primary reasons why QUEST and Medicaid patients are not getting proper dental care is in large part due to low reimbursement rates to dental providers. Dentist cannot afford to take Quest and Medicaid patients due to the excessive paper work and "well below break-even" reimbursement rates. With over 82,000 children covered by Quest and Medicaid and only 30% of eligible providers participating in QUEST and Medicaid, your Committee finds that more providers will commit to these patients if the reimbursement level is raised.

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 S.B. No. 1338 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.