STAND. COM. REP. NO. 593

Honolulu, Hawaii

RE:    S.B. No. 238

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Human Services and Public Housing, to which was referred S.B. No. 238 entitled:

"A BILL FOR AN ACT RELATING TO MENTAL HEALTH,"

begs leave to report as follows:

     The purpose of this measure is to increase the reimbursement rate for Medicaid and QUEST psychiatric services according to county population, and to appropriate funds for the reimbursement rate increase.

     Hawaii Medical Service Association submitted testimony in support of this measure.  Kahi Mohala Behavioral Health submitted testimony in support of the intent of this measure.  The Department of Human Services submitted comments.

     Your Committee finds that this measure will improve the provision of mental health care in Hawaii.

     It is your Committee's intent that the appropriated funds will be given to the QUEST plans to increase the psychiatrists' reimbursement.  Your Committee has amended this measure by:

     (1)  Adding a provision that ensures that health maintenance organizations and prepaid health plans will not be required to increase reimbursement rates for psychiatric services until the Department of Human Services makes adjustments to the rate of payment per participating recipient amounts;

     (2)  Changing the rate formula to a percentage of the Medicare rates; and

     (3)  Making technical, nonsubstantive changes for the purposes of clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Human Services and Public Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 238, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 238, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Human Services and Public Housing,

____________________________

SUZANNE CHUN OAKLAND, Chair