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. 911 entitled:

begs leave to report as follows:

The purpose of this measure is to remove financial disincentives for health plans and providers actively performing outreach to high-risk populations.

This measure also appropriates funds in the amount of $70,000 to the Department of Human Services to hire additional staff.

Your Committee finds that plans and providers are paid a set amount regardless of whether an assigned patient needs frequent and expensive care or never uses the benefit at all. Nonprofit, community health care providers are actively performing outreach to many high-risk and high-cost patients that otherwise would not seek out medical care. Thus, removing the financial disincentive for high-risk population would ensure that Hawaii's high-risk population will continue to get the care they need.

Upon further consideration, your Committee has amended this measure to change the appropriated amount to $1 for purposes of enabling further discussion, and by making technical nonsubstantive corrections.

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. 911, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 911, S.D. 1.