Honorable Calvin K.Y. Say

Speaker, House of Representatives

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, S.D. 2, entitled:

beg leave to report as follows:

The purpose of this measure is to ensure that federally qualified health centers and rural health clinics receive minimum payment for services provided to certain uninsured patients, such as QUEST and medicaid patients, by incorporating a prospective payment mechanism into state law.

This measure also appropriates funds to the Department of Health to provide medical care to the uninsured through nonprofit, community-based health care providers.

Testimony in support of the measure was received from the Hawaii Primary Care Association, the Waianae Coast Comprehensive Health Center, the Molokai Community Health Center, Ho'ola Lahui Hawaii, the Hamakua Health Center, the Waikiki Health Center, the Kalihi-Palama Health Center, the Molokai Ohana Health Care, the Kokua Kalihi Valley, and the Hawaii Psychiatric Medical Association. The Department of Health supported the intent of the measure.

Testimony in opposition to the measure was received from the Department of Human Services. Comments on the measure were received from the Attorney General.

Your Committees understand that federally qualified health centers and rural health clinics provide a needed safety net function by serving a patient population that is for the most part, uninsured or medicaid-eligible. This measure will provide these health centers and clinics with a reasonable and relatively stable system of reimbursement and ensure that state law conforms to the requirements of the federal Social Security Act.

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, S.D. 2, and recommend that it pass Second Reading and be referred to the Committee on Finance.