Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 3270, S.D. 1, entitled:

begs leave to report as follows:

The purpose of this measure is to provide cost-effective care for Hawaii residents who are uninsured, while at the same time ensuring that the community health center system remains financially viable and stable in the face of a growing population of uninsured.

Specifically, this bill statutorily requires that federally qualified health centers and rural health clinics be reimbursed in accordance with relevant sections of the Social Security Act and that the services of these centers and clinics shall remain mandatory services pursuant to the Social Security Act. This bill also provides for adjustment of reimbursement rates if costs exceed an unspecified percentage for various changes relating to intensity, duration, or amount of service provided, facilities used, regulatory requirements, and other extraordinary circumstances. Finally, this bill appropriates an unspecified amount to the Department of Health to assist nonprofit, community-based health care providers for direct medical care for the uninsured, which may be distributed on a "per visit" basis, taking into consideration the need on all islands.

Your Committee has amended this measure by making technical nonsubstantive amendments for the purpose of clarity.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3270, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3270, S.D. 2.