STAND. COM. REP. NO. 3019

Honolulu, Hawaii

RE:    H.B. No. 2412

       H.D. 1

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committees on Human Services and Public Housing and Health, to which was referred H.B. No. 2412, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HEALTH,"

beg leave to report as follows:

     The purpose of this measure is to meet rising health care costs and ensure that Hawaii's residents have continued access to quality health care by appropriating funds for the State's portion of the federal disproportionate share hospital allowance.

     Testimony in support of this measure was submitted by the Department of Human Services, the Hawai‘i Business Roundtable, Hawaii Health Systems Corporation, the Healthcare Association of Hawaii, and Kaiser Permanente.

     Your Committees find that this measure would provide an opportunity to qualify for approximately $7,000,000 of federal funds to support health care for Hawaii's most vulnerable residents, and that the status quo of inadequate federal reimbursement is unsustainable and puts quality healthcare for these individuals and families at risk.  Your Committees further find that inadequate reimbursement must be addressed, as it is a major factor in physician attrition and reduced patient access to specialty care, and it impacts the quality of care that is available to all, not just the very poor.

     Your Committees have amended this measure by:

     (1)  Inserting an appropriation amount of $5,774,340; and

     (2)  Changing the effective date to July 1, 2008.

     As affirmed by the records of votes of the members of your Committees on Human Services and Public Housing and Health that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2412, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2412, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.

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

____________________________ DAVID Y. IGE, Chair

____________________________ SUZANNE CHUN OAKLAND, Chair