HB1283.DOC

HOUSE OF REPRESENTATIVES	H.B. NO.	1283
TWENTY-FIFTH LEGISLATURE, 2009
STATE OF HAWAII

A BILL FOR AN ACT

SECTION 1. The legislature finds that medicaid is the cornerstone of health care for our most needy population. Furthermore, the legislature has previously recognized 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.

Hawaii's hospitals in particular have been hurt by the inadequacy of medicaid reimbursements and payments. Hawaii's hospitals have annually lost millions of dollars because government reimbursement falls far below the actual cost of providing medical care. Between 2003 and 2005, medicaid payments to hospitals covered only 73 to 78 per cent of total medicaid costs, creating a strain on the hospitals' financial stability.

Through the efforts of Hawaii's congressional delegation, a one-time federal medicaid disproportionate share hospital (DSH) appropriation of $10,000,000 was secured for Hawaii for 2007. State funds are needed to match the federal DSH monies. The combined funding will help meet the rising health care needs of our communities.

The purpose of this Act 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.

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $7,376,000 or so much thereof as may be necessary for fiscal year 2009-2010 for the State's portion of the federal disproportionate share hospital allowance.

The sum appropriated shall be expended by the department of human services for the purposes of this Act.

SECTION 3. This Act shall take effect on July 1, 2009.

INTRODUCED BY:	_____________________________