STAND. COM. REP. 429

Honolulu, Hawaii

, 2003

RE: H.B. No. 670

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committees on Human Services and Housing and Health, to which was referred H.B. No. 670 entitled:

"A BILL FOR AN ACT RELATING TO MEDICAID,"

beg leave to report as follows:

The purpose of this bill is to fairly compensate providers of health care under Medicaid by, among other things:

(1) Requiring the Department of Human Services (DHS) to withdraw certain proposals to the Centers for Medicare and Medicaid Services (Centers);

(2) Submitting a proposal to the Centers to amend Hawaii's Medicaid plan to set payments at a level that will at least cover the actual cost of care;

(3) Requiring DHS to propose in negotiations for future contracts with health plans, to provide health care under QUEST, annual inflationary adjustments to the per capita payments based on a factor that is generally accepted nationally; and

(4) Requiring DHS to disallow any item to be removed from the QUEST formulary unless it has been shown to be ineffective.

 

The Hawaii Long Term Care Association, Hawaii Medical Services Association, Hawaii Pacific Health, and Healthcare Association of Hawaii supported this bill. DHS opposed the measure.

Insufficient reimbursement fees to health care providers from government programs like Medicare and Medicaid have become a serious problem in Hawaii. This bill will allow health care providers to be compensated at a level that more closely approaches the actual cost of providing services. It is imperative that the State increase reimbursement rates to maintain access to essential health care services for all Hawaii residents.

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. 670 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,

 

____________________________

DENNIS A. ARAKAKI, Chair

____________________________

MICHAEL PUAMAMO KAHIKINA, Chair