STAND. COM. REP. NO. 2237

Honolulu, Hawaii

RE:    S.B. No. 2650

       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 Commerce and Consumer Protection, to which was referred S.B. No. 2650 entitled:

"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF HUMAN SERVICES,"

beg leave to report as follows:

     The purpose of this measure is to require Medicaid contracts between the Department of Human Services and Medicaid healthcare insurance plan contractors to contain provisions affecting the reimbursement obligations in the policies between the insurance plan and the home and community-based agencies.

     Testimony in support of this measure was submitted by Universal Case Management, LLC, the Case Management Council, and Catholic Charities Hawaii.  Testimony in opposition to this measure was submitted by the Department of Human Services.  Written testimony presented to the Committees may be reviewed on the Legislature's website.

     Your Committees find that many contracts that are entered into between Medicaid contractors and the Department of Human Services do not contain provisions that specify the duties and obligations of the Medicaid contractors.  Your Committees also find that these duties and obligations should be determined when these contracts are entered into.  Your Committees further find that the twenty-five per cent reduction of the reimbursement rate in effect is too large, and that a lower percentage is more appropriate.

     Accordingly, your Committees have amended the measure to reflect a maximum ten per cent reduction in reimbursement rates.  Your Committees have also made technical, nonsubstantive stylistic changes.

     As affirmed by the records of votes of the members of your Committees on Human Services and Commerce and Consumer Protection that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2650, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2650, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Human Services and Commerce and Consumer Protection,

____________________________ ROSALYN H. BAKER, Chair

____________________________ SUZANNE CHUN OAKLAND, Chair