STAND. COM. REP. NO.  874-10

Honolulu, Hawaii

                , 2010

RE:   S.B. No. 2270

      S.D. 2

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Sir:

     Your Committees on Health and Human Services, to which was referred S.B. No. 2270, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO MEDICAID REIMBURSEMENTS,"

beg leave to report as follows:

     The purpose of this bill is to ensure that fair compensation is provided to acute care hospitals and long-term care facilities by requiring Medicaid reimbursements to:

(1)  Hospitals for patients occupying acute-care beds who are on a waitlist for long-term care to be at least equal to the rate paid for acute-care services; and

(2)  Long-term care facilities for patients with medically complex conditions to be at least equal to the rate paid for subacute care.

     The Chamber of Commerce of Hawaii, The Queen's Medical Center, Kaiser Permanente Hawaii, and the Healthcare Association of Hawaii supported this bill.  The Department of Human Services opposed this measure.

     Your Committees have amended this bill by:

(1)  Providing that unless shorter payment timeframes are otherwise specified in a contract, Medicaid and its contracted health plans shall reimburse a claim that is not contested or denied not more than 30 calendar days after receiving the claim filed in writing, or 15 calendar days after receiving the claim filed electronically, as appropriate; and

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

     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. 2270, S.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2270, S.D. 2, H.D. 1, and be referred to the Committee on Finance.

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

____________________________ JOHN M. MIZUNO, Chair

____________________________ RYAN I. YAMANE, Chair