STAND. COM. REP. NO.  1602

Honolulu, Hawaii

                , 2009

RE:   S.B. No. 917

      S.D. 2

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred S.B. No. 917, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO THIRD PARTY LIABILITY FOR MEDICAID,"

begs leave to report as follows:

     The purpose of this bill is to ensure compliance with the Deficit Reduction Act of 2005 by strengthening the State's ability to identify and obtain payments from first or third party payers that are legally responsible to pay for health care services received by Medicaid recipients, when these payers are primary to Medicaid.

The Department of Human Services and Department of the Attorney General testified in support of this bill.

     Your Committee has amended this bill by:

     (1)  Eliminating the term "first party," along with its definition, as the term "third party" in the Deficit Reduction Act of 2005 refers to any other liable payor other than the State's medical assistance program, and therefore makes the term "first party" unnecessary; and

     (2)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 917, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 917, S.D. 2, H.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair