STAND. COM. REP. NO. 1304

Honolulu, Hawaii

RE:    H.B. No. 1525

       H.D. 1

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 1525, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO MEDICAID,"

begs leave to report as follows:

     The purpose of this measure is to require all Medicaid health care insurance contracts to be awarded only to nonprofit and for‑profit entities that comply with annual reporting requirements.

     Specifically, this measure requires potential nonprofit and for-profit bidders for contracts to propose certified audit reports that must be submitted to the Department, the Insurance Commissioner, and the Legislature and be accessible to public.  The report must include items such as percentages of revenue paid for medical services and administrative costs, held in reserves, and paid to shareholders.  The report must also include the number of employees and their pay, contracts outside the State, and a description of any civil or criminal proceedings brought against the bidder.

     Your Committee received one written comment on this measure.  The written comment may be reviewed on the Legislature's website.

     Your Committee finds that the disclosures required by this measure will help improve access to and the delivery of affordable, quality health care services to consumers.

     Upon further consideration, your Committee has amended this measure by making technical amendments for the purposes of clarity and consistency.

     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 H.B. No. 1525, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1525, H.D. 1, S.D. 2.

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

____________________________

DONNA MERCADO KIM, Chair