STAND. COM. REP. NO. 2553

Honolulu, Hawaii

RE:    S.B. No. 2099

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Madam:

     Your Committee on Judiciary and Government Operations, to which was referred S.B. No. 2099, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HEALTH,"

begs leave to report as follows:

     The purpose of this measure is to ensure continuity of care for the QUEST-eligible 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 requests for proposals for contracts over $100,000,000 for the QUEST health plans in the year 2010.

     Your Committee finds that there are a number of changes in the future for both Medicaid and the Department of Human Services, such as federal guideline changes for Medicaid and a soon‑to-be changing executive branch administration.  Additional changes also include significant delays in payments to QUEST-contracted medical providers and the shift of behavioral health clients to the Department of Health.  Your Committee also finds that issuing a request for proposals for QUEST health plans is inappropriate due to the fluidity of the Department of Human Services at this time as well as the cost considerations for both health care providers and the Department of Human Services.  State budget restrictions are being imposed on numerous departments and programs, and issuing a request for proposals would be imprudent at this time.

     Your Committee has made technical, nonsubstantive stylistic changes for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Judiciary and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2099, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2099, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Judiciary and Government Operations,

____________________________

BRIAN T. TANIGUCHI, Chair