Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Human Services, to which was referred S.B. No. 1519 entitled:

begs leave to report as follows:

The purpose of this measure is to increase the rate of payment to foster care home providers.

Testimony in support of this measure was submitted by the Adult Foster Home Association of Hawaii and one individual. Testimony in opposition to this measure was submitted by the Department of Human Services.

Your Committee finds that the cost of operating foster care homes has increased. In addition to the doubling of malpractice and liability insurance costs and escalating rental costs, foster care home providers have been required by new case management policies, instituted by the Department of Human Services, to perform their own billing and accreditation operations. These requirements add to the time and costs already incurred by providers. Thus, your Committee believes that the amount of funding currently allocated to foster care home providers should be increased.

Your Committee notes that additional financing resource options should be investigated in order to increase the rate of payment to foster care providers.

Your Committee has amended this measure by adding language to clarify that the seven percent increase in payments to foster care home providers shall be over its current rate.

As affirmed by the record of votes of the members of your Committee on Human Services that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1519, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1519, S.D. 1, and be referred to the Committee on Ways and Means.