STAND. COM. REP. NO. 2204

Honolulu, Hawaii

RE:    S.B. No. 2099

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Madam:

     Your Committees on Human Services and Health, to which was referred S.B. No. 2099 entitled:

"A BILL FOR AN ACT RELATING TO HEALTH,"

beg leave to report as follows:

     The purpose of this measure is to ensure continuity of care for the neediest population in Hawaii and to make certain that Medicaid contracts reflect expectations outlined in national health care reform, by establishing restrictions on the issuance of request for proposals for QUEST contracts.

     Specifically, this measure restricts the Department of Human Services from issuing a Request for Proposals for the QUEST health plans in the year 2010.

     Testimony in support of this measure was submitted by Hawaii Medical Service Association (HMSA), AlohaCare, and Faith Action for Community Equity.  Written testimony presented to the Committees may be reviewed on the Legislature's website.

     Your Committees finds that there are a number of changes in the future for both Medicaid and for the Department of Human Services, such as federal guideline changes for Medicaid and a soon‑to-be changing executive branch administration.  Your Committees also find that issuing a request for proposals for QUEST health plans at this juncture would be impractical given the fluid circumstances and costly for both health care providers and the Department of Human Services at a time when state budget restrictions are being imposed.

     Currently, HMSA is providing coverage for QUEST members under a contract extension and it is HMSA's understanding that the extension will be in place until July 2011.

     Under the circumstances, your Committees find that this measure will protect the interests of the State, participating QUEST health plans, and QUEST members.

     Your Committees have made technical, nonsubstantive stylistic changes.

     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 S.B. No. 2099, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2099, S.D. 1, and be referred to the Committee on Judiciary and Government Operations.

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

____________________________ DAVID Y. IGE, Chair

____________________________ SUZANNE CHUN OAKLAND, Chair