Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Human Services, to which was referred S.B. No. 2140 entitled:

begs leave to report as follows:

The purpose of this measure is to require the Department of Human Services to adjust the Medicaid eligibility spenddown level.

Specifically, it requires the Department to apply a medically needy standard that is equal to the current federal poverty level for a family of the same size when determining income eligibility for the QUEST program.

Your Committee received testimony in support of the measure from the Legal Aid Society of Hawaii and the National Association of Social Workers. Your Committee received testimony in opposition to the measure from the Department of Human Services.

Your Committee finds that this measure will implement the suggestions of the Legal Aid Society of Hawaii and National Association of Social Workers regarding the addition of Medicaid spenddown provisions as well as QUEST spenddown provisions.

Accordingly, your Committee has amended this measure to require the Department of Human Services to disregard an amount of income equal to the difference between one hundred thirty-three percent of the assistance allowance and one hundred percent of the federal poverty level, as adjusted annually by the federal government, for a family of the size applying for the assistance.

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. 2140, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2140, S.D. 1, and be referred to the Committee on Ways and Means.