Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1772 entitled:

begs leave to report as follows:

The purpose of this measure is to develop a mechanism to enable the State to identify and publicize employers with a significant number of employees enrolled in the State's medical assistance programs.

Specifically, this measure requires applicants for State medical assistance to identify their employers. This measure then requires the Department of Human Services to make a publicly available report to the Legislature, identifying employers in the State who employ twenty-five or more beneficiaries of medical assistance programs administered by the department.

Your Committee finds that this measure is necessary to substantiate unsettling rumors circulating among the community that certain employers in the State are undermining the purposes of the State's Prepaid Health Care Act by not fully covering the cost of health care coverage for their employees. These employers reportedly pay their employees wages that are just low enough to enable the employees to qualify for the State's medical assistance programs. In this manner, these employers surreptitiously shift the costs of their employees' health care coverage from themselves to the State, and from the State to the taxpayers.

Your Committee has amended this measure by making technical nonsubstantive amendments for the purposes of clarity and style.

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. 1772, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1772, S.D. 1.