Eliminates cap on enrollment in the QUEST program. Directs the Department of Human Services to apply for an amendment of the state waiver from the Centers for Medicare and Medicaid Services. Appropriates funds. (SB2507 HD1)

A BILL FOR AN ACT

SECTION 1. The legislature finds that it is critical to ensure universal health coverage for Hawaii's residents. Hawaii's QUEST program goes a long way toward achieving this goal. However, the program cannot accommodate all eligible uninsured adults, and a cap has been placed on participation in the QUEST program, thus leaving out tens of thousands of eligible individuals.

The current cap prevents many adults, especially non-pregnant women, who are income- and asset-eligible from enrolling in the program. These excluded but eligible adults are at high risk for not obtaining necessary primary and preventive care and necessary prescription drugs, and are more likely to incur or generate unnecessary emergency room costs because of their uninsured status. Uninsured adults are a financial burden on hospitals, emergency rooms, community health care centers, and others that provide uncompensated care.

The legislature further finds that almost fifty-four per cent of the funds needed to cover all eligible adults under the QUEST program can be matched by the federal government. In addition, the cap limit has not been raised even though more children are now eligible due to more liberal eligibility requirements for children implemented in July 2000.

The purpose of this Act is to expand enrollment in the State's QUEST program by eliminating the enrollment cap.

SECTION 2. The department of human services shall submit a request to the Centers for Medicare and Medicaid Services to amend the state waiver to allow the State to remove its QUEST enrollment cap. Upon securing the amendment to the state waiver, the department of human services shall remove any cap on enrollment in the State's QUEST program and shall enroll all otherwise eligible individuals. The director of human services shall adopt rules in accordance with chapter 91 to implement this section.

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2006-2007 to expand healthcare coverage by eliminating the cap on enrollment in the State's QUEST program.

The sum appropriated shall be expended by the department of human services for the purposes of this Act.

SECTION 4. This Act shall take effect on July 1, 2022.