STAND. COM. REP. NO. 2484

Honolulu, Hawaii

RE:    S.B. No. 2270

       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 Ways and Means, to which was referred S.B. No. 2270, S.D. 1, entitled:

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

begs leave to report as follows:

     The purpose of this measure is to ensure fair compensation to:

     (1)  Acute care hospitals that provide care to Medicaid patients; and

     (2)  Long-term care facilities that treat patients with medically complex conditions who were previously in acute care hospitals.

This measure also appropriates an unspecified amount to fund the required reimbursements.

     Your Committee received comments in support of this measure from the Chamber of Commerce of Hawaii, the Healthcare Association of Hawaii, and the Queen's Medical Center.  Written comments may be viewed on the Legislature's website.

     Your Committee finds that Medicaid reimbursement rates for payments to acute care hospitals and long-term care facilities are based on the level of care needed.  However, because of the chronic shortage of long-term care beds, many patients in acute care hospitals are waitlisted for admission to long-term care facilities.  The lower reimbursement rates paid for these patients creates significant losses for both acute care hospitals and long-term care facilities.  This measure is intended to alleviate the financial burden imposed by these delays.

     Upon further consideration, your Committee has amended this measure by:

     (1)  Changing the effective date to July 1, 2050, to promote further discussion; and

     (2)  Making technical nonsubstantive amendments for the purposes of clarity and style.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2270, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2270, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DONNA MERCADO KIM, Chair