STAND. COM. REP. NO. 384

Honolulu, Hawaii

RE:    S.B. No. 425

       S.D. 2

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committees on Human Services and Health, to which was referred S.B. No. 425, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO MEDICAID,"

beg leave to report as follows:

     The intent of this measure is to foster preventative and proactive patient behavior to stay well and reduce the incidence of chronic illness.  The purpose of this measure is to establish a wellness pilot program within Medicaid.

     Your Committees received testimony in support of this measure from Hawaii Medical Service Association and one individual.  Your Committees received testimony in opposition to this measure from the Department of Human Services.  Your Committees received comments on this measure from one individual.

     Your Committees find that Hawaii must comply with federal health reform legislation requirements by 2014.  The Affordable Care Act, Public Law 111-148, has provisions for Medicaid demonstration programs relating to payment reform that emphasize quality outcomes.  Accordingly, your Committees are interested in creating evidence-based health and wellness alternatives that reduce the incidence of chronic disease and support Medicaid recipients and QUEST members in maintaining healthier lifestyles.

     Your Committees also find that S.B. No. 126 establishes a Joint Legislative Task Force on Medicaid to examine issues relating to Medicaid shortfalls.  Your Committees received testimony in support of the Task Force from several organizations.  However, testifiers also expressed concern that the title of S.B. No. 126 may be too narrow to encompass the establishment of the Task Force.  Your Committees find that the establishment of the Task Force may be more appropriately placed in this measure and note that it would be helpful to expand the Task Force's membership.

     Accordingly, your Committees have amended this measure by:

     (1)  Inserting language from section 3 of S.B. No. 126, which establishes the Joint Legislative Task Force on Medicaid to examine issues related to Medicaid shortfalls;

     (2)  Adding the following persons to serve on the Joint Legislative Task Force on Medicaid:

          (A)  The Director of Human Services, or the Director's designee;

          (B)  The Director of Health, or the Director's designee;

          (C)  The Director of Commerce and Consumer Affairs, or the Director's designee;

          (D)  A representative from Hawaii Medical Service Association;

          (E)  A representative from Kaiser Permanente;

          (F)  A representative from AlohaCare;

          (G)  A representative from ‘Ohana Health Plan;

          (H)  A representative from Evercare;

          (I)  A representative from the Hawai‘i Primary Care Association;

          (J)  A representative from the Healthcare Association of Hawaii;

          (K)  A representative from the Hawaii Medical Association;

          (L)  A representative from Kalihi-Palama Health Center;

          (M)  A representative from Hawaii Medical Center;

          (N)  A representative from Mental Health America of Hawai‘i;

          (O)  A representative from Avalon Health Care Group;

          (P)  A representative from the Hawaii Diatectic Association;

          (Q)  A representative from Faith Action for Community Equity Hawaii;

          (R)  A representative from PHOCUSED;

          (S)  A representative from YMCA of Honolulu; and

          (T)  A representative from AARP Hawaii;

     (3)  Making conforming amendments to accurately reflect the purpose of the amended measure;

     (4)  Changing the effective date to upon approval; provided that the appropriation section is effective on July 1, 2011, to coincide with the beginning of the fiscal year; and

     (5)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the records of votes of the members of your Committees on Human Services and Health that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 425, S.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 425, S.D. 2, and be referred to the Committee on Ways and Means.

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

____________________________ JOSH GREEN, M.D., Chair

____________________________ SUZANNE CHUN OAKLAND, Chair