Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2929, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to allow time to prepare for the phasing in of a new methodology for reimbursement of long-term care services and to make permanent that methodology.

Your Committee finds that Act 226, Session Laws of Hawaii 2000, provided for a new long-term care reimbursement methodology to begin in 2003. However, this must be preceded by provider education and training, system changes to medicaid, and changes to long-term care facility resident assessment. This measure allows for a gradual phasing in of the methodology, to ensure that facilities can make necessary adjustments, by delaying the deadline for implementing the new methodology from June 30, 2003, to July 1, 2008. This measure also repeals the sunset provision that would have repealed the use of the new methodology on June 30, 2004, thus making the new methodology permanent.

Your Committee finds that there is a need to allow additional time to phase in the new methodology and to make the use of such methodology permanent.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2929, S.D. 1, and recommends that it pass Third Reading.