STAND. COM. REP. NO.  251

Honolulu, Hawaii

                , 2009

RE:   H.B. No. 703

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Sir:

     Your Committees on Human Services and Health, to which was referred H.B. No. 703 entitled:

"A BILL FOR AN ACT RELATING TO HEALTH,"

beg leave to report as follows:

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

     Specifically, this bill appropriates $10,181,909 for fiscal year 2009-2010 as the State's share to maximize the availability of the federal disproportionate share hospital allowance to the State.

     Your Committees received testimony in support of this bill from the Chamber of Commerce of Hawaii, Kaiser Permanente, Hawaii Medical Services Association, Healthcare Association of Hawaii, and the American Association of Retired Persons, Hawaii.  The Department of Human Services submitted testimony in opposition.

     Your Committees find that Medicaid is the cornerstone of health care for the State's most needy population and that it is in the public interest to ensure that health care payments made with state funds or controlled by the State are sufficient to cover the actual costs of care.  However, Hawaii's hospitals have annually lost millions of dollars because government reimbursement falls far short of the cost of providing medical care.  Through the continued efforts of Hawaii's congressional delegation, a federal Medicaid disproportionate share hospital allowance of $12,500,000 has been secured for Hawaii.

     Your Committees find that the matching state appropriation is necessary for the expenditure of these federal funds to help provide continuing health care in the State's communities.

     As affirmed by the records of votes of the members of your Committees on Human Services and Health that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 703 and recommend that it pass Second Reading and be referred to the Committee on Finance.

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

____________________________ RYAN I. YAMANE, Chair

____________________________ JOHN M. MIZUNO, Chair