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 S.B. No. 654, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to increase Medicaid payments for services provided by health care providers to amounts sufficient to cover the actual costs of the services.

Your Committee finds that many long-term care patients are cared for by institutions or providers who are reimbursed through the Medicaid program. However, Medicaid payment rates are not sufficient to cover the actual costs of providing long-term care and this places the provider at financial risk. This bill seeks to correct this problem by adjusting Medicaid payment rates to recoup the actual cost of the providers' services.

Your Committee has amended this bill by changing the appropriated amounts to an unspecified amount and has also made technical nonsubstantive amendments in keeping with proper drafting style.

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 S.B. No. 654, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 654, S.D. 2.