Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Finance, to which was referred S.B. No. 1022, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this bill is to expand services to beneficiaries of medical assistance programs by temporarily requiring medical assistance programs, such as Medicaid and QUEST, to provide chiropractic coverage.

The Hawaii State Chiropractic Association, Back in Action Chiropractic, Inc., Hawaii Kai Chiropractic, ChiroCenter Kahului, Momyer Chiropractic, Pukalani Chiropractic, Inc., Klein Chiropractic Center, American Chiropractic Association, and numerous concerned individuals supported this bill. The Department of Human Services (DHS) supported the intent of this bill.

Your Committee notes that this measure, as referred to your Committee, requires DHS to provide additional medical coverage but does not include an appropriation or other funding source.

Your Committee also recognizes that Medicaid and QUEST are medical assistance programs that are funded by both state funds and federal matching funds. To receive federal matching fund reimbursements for chiropractic coverage, DHS must submit a State Plan Amendment that must be approved by the federal Centers for Medicare and Medicaid Services (CMS). Your Committee notes that this bill, as referred to your Committee, contains an effective date of July 1, 2005, with or without CMS approval of the State Plan Amendment. If no approval is received from CMS prior to the effective date of this measure, then all costs for chiropractic care will have to be funded with state funds only.

Accordingly, your Committee has amended this measure by:

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1022, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1022, S.D. 1, H.D. 1.