STAND. COM. REP. NO. 812

Honolulu, Hawaii

RE:    S.B. No. 238

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 238, S.D. 1, 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.

Specifically, this measure increases the reimbursement rate for psychiatric services to an unspecified percentage of the Medicare fee schedule; provided that the reimbursement rate for counties with a population greater than two hundred thousand shall be an unspecified percentage of the Medicare fee schedule.  This measure requires the Department of Human Services to make the appropriate adjustments to the rate of payment to health maintenance organizations and prepaid health plans, which are not required to increase reimbursement rates for psychiatric services until the Department makes such adjustments.

     Your Committee received comments on this measure from the Department of Human Services and the Disability and Communication Access Board, Department of Health.

     Your Committee finds that there is no mechanism by which health maintenance organizations and prepaid health plans are notified that adjustments have been made.  Accordingly, your Committee has amended this measure by:

(1)  Adding a requirement that the Department of Human Services notify health maintenance organizations and prepaid health plans within one week of finalizing any rate adjustments; and

(2)  Requiring the Department of Human Services to submit annual reports to the Legislature regarding reimbursement rates and any adjustments.

     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. 238, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 238, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

ROSALYN H. BAKER, Chair