Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committees on Human Services and Housing and Health, to which was referred S.B. No. 2026, S.D. 1, entitled:

beg leave to report as follows:

The purpose of this bill is to appropriate funds to provide adequate Medicaid reimbursement to hospitals and physicians who provide medical services to Medicaid and QUEST participants.

The Hawaii Primary Care Association, Healthcare Association of Hawaii, The Chamber of Commerce of Hawaii, Hawaii Medical Service Association, NAMI Oahu, and Hawaii Psychiatric Medical Association testified in support of this measure. The Hawaii Health Systems Corporation submitted testimony supporting the intent of this measure.

The Department of Human Services and Department of Budget and Finance opposed this measure.

Your Committees find that the Medicaid reimbursement rate is often below 80 percent of the cost of care. Health care providers are suffering financially, in part because they are unable to recover the full cost of patient care, and often suffer losses.

As affirmed by the records of votes of the members of your Committees on Human Services and Housing and Health that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2026, S.D. 1, and recommend that it pass Second Reading and be referred to the Committee on Finance.