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. 235 entitled:

begs leave to report as follows:

The purpose of this measure is to provide a tax credit for dentists for the cost of, dental procedures performed for Medicaid eligible patients, increase the reimbursement rate up to seventy-five percent of the usual, customary, and reasonable fees, and standardize the reimbursement claim forms.

Testimony in support of this measure was submitted by the Hawaii Dental Association. Testimony in opposition was submitted by the Department of Taxation. Comments were submitted by the Department of Human Services.

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. Your Committee further finds that with the current rate of reimbursement, those dentists providing services to the QUEST population well deserve a tax credit.

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. 235 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.