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 Hawaiian Affairs, to which was referred S.B. No. 911 entitled:

beg leave to report as follows:

The purpose of this measure is to remove financial disincentives for health plans and providers actively out-reaching 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 for the purpose of this measure.

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

Your Committees find that there is inherent inequity in the managed care system. Plans and provider are paid a set amount regardless of whether an assigned patient needs frequent and expensive care or never uses the benefit at all. Your Committees also find that nonprofit, community health care providers are actively outreaching to many high-risk and high cost patients that otherwise would not seek out medical care. Thus, your Committees believe that removing the financial disincentive for high-risk population would ensure that Hawaii's high-risk population will continue to get the care they need.

As affirmed by the records of votes of the members of your Committees on Health and Human Services and Hawaiian Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 911 and recommend that it pass Second Reading and be referred to the Committee on Ways and Means.