Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Health, to which was referred S.B. No. 1243 entitled:

begs leave to report as follows:

The purpose of this measure is to appropriate funds to the Department of Health to provide resources to nonprofit, community-based health care providers to care for the uninsured.

Testimony supporting this measure was received from the Department of Health, Waianae Coast Comprehensive Health Center, Waimanalo Health Center, Papa Ola Lokahi, AlohaCare, Hawaii Primary Care Association, ILWU Local 142, and Healthcare Association of Hawaii.

Your Committee finds that, over the last decade, there has been a significant increase in the number of individuals in Hawaii who do not have health insurance. This has resulted in increased burdens, financial and otherwise, on Hawaii's health care industry, particularly community health centers. Due to their closeness to the community and open patient-acceptance policies, community health centers represent the best system of community-based primary care for uninsured people. However, financial support for these centers is inadequate to meet the increasing demands of servicing the uninsured. Your Committee finds that this measure provides the necessary resources for these centers to serve the uninsured and to secure the public health and welfare.

Your Committee has amended this measure by providing that the appropriation made by this measure "may", rather than "shall", be used to pay for prescription drugs in order to provide the Department of Health added flexibility in utilizing the funds.

Your Committee further notes that it has also recommended passage of and referred to the Committee on Ways and Means S.B. No. 1519, S.D. 1, which provides a dedicated funding source for Hawaii's community health centers. Therefore, the need for this measure may need to be reevaluated if a dedicated funding source framework is subsequently adopted.

As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1243, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1243, S.D. 1, and be referred to the Committee on Ways and Means.