Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committees on Health and Human Services, to which was referred S.B. No. 3270 entitled:

beg leave to report as follows:

The purpose of this measure is to provide cost-effective care to uninsured individuals and to financially support the community health center system.

Your Committees received testimony in support of this measure from the Healthcare Association of Hawaii, Hawaii Primary Care Association, Ho'ola Lahui Hawaii, Kalihi-Palama Health Center, Hawaii Psychiatric Medical Association, Molokai Community Health Center, Waikiki Health Center, Kiuchi & Nakamoto, Waianae Coast Comprehensive Health Center, Kokua Kalihi Valley, and one individual. Your Committees received testimony in opposition to this measure from the Department of Health, the Department of Human Services, and the Attorney General.

Federally qualified health centers are the most effective means for delivering comprehensive health care to uninsured individuals. Your Committees find that these community-based health centers are facing increased demands and need financial support.

Your Committees further find that federally qualified health centers and rural clinic services rely on a complex array of federal, state, and private funding to support their programs. The state Med-QUEST funding is the single most important source of funding for the community health centers. Reimbursements are provided through a prospective payment system (PPS). As this system is crucial to financing these centers, your Committees have codified this mechanism in the bill.

Your Committees have amended this measure by:

As affirmed by the records of votes of the members of your Committees on Health and Human Services that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3270, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 3270, S.D. 1, and be referred to the Committee on Ways and Means.