STAND. COM. REP. NO. 156-04
Honolulu, Hawaii
, 2004
RE: H.B. No. 2454
Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twenty-Second State Legislature
Regular Session of 2004
State of Hawaii
Sir:
Your Committees on Human Services and Housing and Health, to which was referred H.B. No. 2454 entitled:
"A BILL FOR AN ACT RELATING TO MEDICAID REIMBURSEMENT,"
beg leave to report as follows:
The purpose of this bill is to:
(1) Extend from June 30, 2003, to July 1, 2008, the deadline by which hospital-based and nonhospital-based Medicaid reimbursement rates for institutionalized long-term care must be made equitable; and
(2) Make permanent the provision that payments to critical access hospitals be calculated on a cost basis using Medicare reasonable cost principles.
The Department of Human Services (DHS), Healthcare Association of Hawaii, Hawaii Health Systems Corporation (HHSC), and Hawaii Long Term Care Association testified in support of this bill.
Your Committees find that implementing equity in Medicaid reimbursement rates will not be accomplished by the original deadline date of June 30, 2003. The extension will allow DHS time to allow for a gradual phase-in of the required change in reimbursement methodology.
In addition, your Committees note that HHSC will suffer a loss in revenue because of the change in reimbursement methodology. However, the gradual phase-in will allow HHSC to work with other agencies to find a financial solution.
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 H.B. No. 2454 and recommend that it pass Second Reading and be referred to the Committee on Finance.
Respectfully submitted on behalf of the members of the Committees on Human Services and Housing and Health,
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____________________________ DENNIS A. ARAKAKI, Chair |
____________________________ MICHAEL PUAMAMO KAHIKINA, Chair |
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