Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committees on Health and Human Services and Transportation, Military Affairs and Government Operations, to which was referred S.B. No. 53 entitled:

beg leave to report as follows:

The purpose of this measure is to appropriate funds to allow the Department of Human Services to reimburse federally qualified health centers up to reasonable cost for the provision of health services.

Testimony in support of this measure was submitted by the Department of Human Services, Hawaii Primary Care Association, and Waianae Coast Comprehensive Health Center.

Your Committee finds that the Health Care Financing Administration mandates that all states, including those with 1115 waivers like Hawaii, pay federally qualified health centers and rural health centers on a prospective payment system. Thus, in order for the Department of Human Services to comply with this directive, your Committee feels this appropriation is necessary.

As affirmed by the records of votes of the members of your Committees on Health and Human Services and Transportation, Military Affairs and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 53 and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.