STAND. COM. REP. NO. 2581

Honolulu, Hawaii

RE:    S.B. No. 2650

       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. 2650, S.D. 1, entitled:

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

begs 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 certain provisions affecting reimbursement obligations in the policies between Medicaid healthcare insurance plan contractors and home and community-based case management agencies.

     Specifically, the measure prohibits a Medicaid healthcare insurance plan contractor from reducing reimbursement rates by more than ten per cent to a home and community-based case management agency when policies are renewed.

     Your Committee received written comments in support of this measure from Catholic Charities Hawai'i and two concerned individuals.  Comments in opposition were submitted by the Department of Human Services.  The Med-QUEST Division of the Department of Human Services submitted comments on this measure.  The written comments may be reviewed on the Legislature's website.

     Your Committee finds that this measure will help home and community-based case management agencies in continuing to provide essential services to clients requiring home and community-based services.

     Your Committee has amended this measure by changing the effective date to January 1, 2050, to facilitate further discussion on the measure.

     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. 2650, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2650, S.D. 2.

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

____________________________

DONNA MERCADO KIM, Chair