Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Health and Human Services, to which was referred S.B. No. 2881 entitled:

begs leave to report as follows:

The purpose of this measure is to extend the repeal date of the PACE demonstration project at Maluhia Hospital.

Testimony in support of this measure was received from the Department of Human Services, Chamber of Commerce of Hawaii, Hawaii Health Systems Corporation, and a private citizen.

This measure also makes conforming amendments to the federal agency's new name, Center for Medicare and Medicaid Services, and the Department of Health branch's new name, Office of Health Care Assurance Branch.

Act 211, Session Laws of Hawaii 1992, established a demonstration project at Maluhia Hospital known as the program for all-inclusive care for the elderly (PACE). PACE provides a complete package of health services that enhances the quality of life for the elderly at a capitated rate structure, costing less than Medicare and Medicaid.

The extension of the sunset date from June 30, 2002, to June 30, 2005, provides the necessary transition period into the new permanent status when PACE is granted a permanent provider status by the federal government.

As affirmed by the record of votes of the members of your Committee on Health and Human Services that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2881 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.