STAND. COM. REP. NO.922-02
Honolulu, Hawaii
, 2002
RE: S.B. No. 2867
S.D. 1
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Sir:
Your Committee on Human Services and Housing, to which was referred S.B. No. 2867, S.D. 1, entitled:
"A BILL FOR AN ACT RELATING TO MEDICAID,"
begs leave to report as follows:
The purpose of this bill is to set Medicaid payments within limits of appropriations at a level that more fairly compensates providers by bringing payments closer to the actual costs of quality care offered by providers who must survive financially to continue to treat Medicaid patients.
Specifically, this measure:
(1) Prohibits the Department of Human Services (DHS) from implementing any Medicaid plan amendments to eliminate one-half of the DRI McGraw-Hill inflation component or the return of equity until the federal government allows reimbursement payments to providers that are closer to the actual cost of care;
(2) Requires DHS to set implementation dates for:
(A) The elimination of one-half of the DRI McGraw-Hill inflation component and the return on equity; and
(B) A program to bring reimbursements to providers closer to the actual costs of care;
(3) Requires DHS per capita payment-negotiations with QUEST health care providers to be on an increasing factor; and
(4) Makes unspecified general and federal funds appropriations to DHS to bring reimbursements to providers closer to the actual costs of care for Medicaid recipients.
The Healthcare Association of Hawaii, Hawaii Health Systems Corporation, Chamber of Commerce of Hawaii, Hawaii Long Term Care Association, Hawaii Primary Care Association, and the Hawaii Nurses' Association supported this bill. DHS and the Department of Budget and Finance commented on this measure.
Health care providers serve a vital public purpose, which is to maintain the health of the community at a desirable level. In these times of depressed revenues and rising costs, your Committee finds that equity requires Medicaid to share the financial burden of the health care providers who tend to the aged, blind, and disabled sector of our community.
As affirmed by the record of votes of the members of your Committee on Human Services and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2867, S.D. 1, and recommends that it pass Second Reading and be referred to the Committee on Finance.
Respectfully submitted on behalf of the members of the Committee on Human Services and Housing,
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____________________________ MICHAEL P. KAHIKINA, Chair |
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