STAND. COM. REP. NO. 658

Honolulu, Hawaii

RE:    S.B. No. 423

       S.D. 1

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 S.B. No. 423 entitled:

"A BILL FOR AN ACT RELATING TO HEALTH,"

begs leave to report as follows:

     The purpose of this measure is to appropriate state funds to match the federal Medicaid disproportionate share hospital allowance.

     Your Committee received four written comments on this measure.  Copies of written comments submitted are available for review on the Legislature's website.

     Your Committee finds that this measure would provide the matching appropriation, enabling Hawaii to receive disproportionate share hospital funding from the federal government in the amount of $12,500,000.  Since 1993, as part of the agreement when Med-Quest was established, Hawaii did not qualify for disproportionate share hospital funding.  Your Committee believes that by appropriating $10,181,909 as the State's matching share, the State will enable health care providers to continue offering quality services to Hawaii's disadvantaged populations.

     Your Committee has amended the measure by:

(1)  Changing the effective date to July 1, 2050 to facilitate further discussion; and

(2)  Making technical, nonsubstantive changes for the purpose of clarity and style.

     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. 423, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 423, S.D. 1.

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

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DONNA MERCADO KIM, Chair