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 S.B. No. 1353 entitled:

begs leave to report as follows:

The purpose of this measure is to provide the Medicaid program with sufficient funds to reimburse its health care providers for fiscal year 2002-2003.

Testimony in support of this measure was submitted by the Department of Human Services and the Health Care Association of Hawaii.

Your Committee finds that the expenditures for the State's Medicaid program have increased far above the budgeted levels for fiscal year 2002-2003. This increase is attributable to an unanticipated increase in the number of people served after September 11, 2001, and increases in the cost of prescription drugs.

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 S.B. No. 1353 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.