STAND. COM. REP. NO. 2156

Honolulu, Hawaii

RE:    S.B. No. 2103

       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 Health and Human Services, to which was referred S.B. No. 2103 entitled:

"A BILL FOR AN ACT RELATING TO THE FEDERAL DISPROPORTIONATE SHARE HOSPITAL FUNDS,"

beg leave to report as follows:

     The purpose of this measure is to appropriate state matching funds for the federal disproportionate share hospital allowance allocated to the State for fiscal year 2010-2011. 

     Your Committees received testimony in support of this measure from Kaiser Permanente Hawaii, The Queen's Medical Center, the Hawaii Medical Service Association, the Hawaii Government Employees Association, The Chamber of Commerce of Hawaii, Hawai‘i Pacific Health, the Healthcare Association of Hawaii, and the Hawai‘i Primary Care Association.  Testimony in opposition was received from the Department of Human Services.  Written testimony presented to the Committees may be reviewed on the Legislature's website.

     Your Committees find that the cost of care for Medicaid patients exceeds Medicaid/QUEST reimbursements and payments, resulting in losses to Hawaii's hospitals of tens of millions of dollars a year.  Through the continued efforts of Hawaii's congressional delegation, a federal Medicaid disproportionate share hospital appropriation has been secured for Hawaii to help hospitals reduce their losses.  However, these funds cannot be expended without a matching state appropriation.  Although the Legislature appropriated state matching funds for this purpose for fiscal year 2009-2010, those funds have not been released.  This measure remedies that situation, preserving the availability of federal and state funds through the 2010-2011 fiscal year.

     Your Committees have amended this measure by:

     (1)  Making state matching funds appropriated for the 2009‑2010 fiscal year by Act 23, Special Session Laws of Hawaii 2009, available for fiscal biennium 2009-2011; and

     (2)  Making technical, nonsubstantive changes to ensure clarity and accuracy in the language of this measure.

     As affirmed by the records of votes of the members of your Committees on Health and Human Services that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2103, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2103, S.D. 1, and be referred to the Committee on Ways and Means.

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

____________________________ SUZANNE CHUN OAKLAND, Chair

____________________________ DAVID Y. IGE, Chair