Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Human Services, to which was referred H.B. No. 1272, H.D. 2, entitled:

begs leave to report as follows:

The purpose of this measure is to require the Department of Human Services to conduct a two-year pilot project to maximize federal Medicare collections and cost avoidance, to be funded on a contingency basis.

Testimony in support of this measure was submitted by the Legal Aid Society of Hawaii and one concerned citizen. The Office of Hawaiian Affairs submitted testimony in support of the intent of this measure. Testimony in opposition to this measure was submitted by the Department of Human Services and the Hawaii Disability Rights Center.

Your Committee finds that there are about 18,000 individuals in the State who are eligible for both Medicare and Medicaid coverage. Medicaid is a partnership between the State and the federal government, with the State paying for 46% of program costs. In contrast, Medicare costs are paid for by the federal government alone. Your Committee further finds that Hawaii's federal reimbursement rate for Medicare is low, as compared to that of other states with similar populations. Your Committee finds that maximizing federal Medicare benefits would not only ensure that dually-eligible individuals continue to receive appropriate medical care, but could also result in substantial cost savings to the State.

Your Committee has amended this measure by:

As affirmed by the record of votes of the members of your Committee on Human Services that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1272, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1272, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.