HOUSE OF REPRESENTATIVES	H.B. NO.	1956
TWENTY-SIXTH LEGISLATURE, 2012
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO HEALTH.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature recognizes the importance of medicaid coverage for the State's most vulnerable and needy populations and medicaid payments to providers must therefore be sufficient to cover the actual costs of care.  Through the efforts of Hawaii's congressional delegation, a federal disproportionate share hospital appropriation of $10,000,000 per year, or $2,500,000 per quarter, has been secured for Hawaii through 2019.  However, these federal funds cannot be expended without state matching funds.

     The legislature finds that the amount of the state match is dependent upon the federal medical assistance percentage at the time the state funds are spent.  For federal fiscal year 2012, Hawaii's Federal Medical Assistance Percentage is 50.48 per cent, and for federal fiscal year 2013, Hawaii's Federal Medical Assistance Percentage is 51.86 per cent.  If Hawaii draws down the $10,000,000 in federal funds on October 1, 2012, or later, the state match would be less than the state match before that date.  At a 51.86 per cent Federal Medical Assistance Percentage, the state match would be $9,282,684.

     The appropriation contained in this Act will match the $10,000,000 in federal disproportionate share hospital funds that are available for the second, third, and fourth quarters of federal fiscal year 2012.  Combined federal and state funding will provide continuing medicaid health care to the community.

     The purpose of this Act is to ensure continued medicaid coverage to Hawaii residents by appropriating state funds to match the federal disproportionate share hospital allowance.

     SECTION 2.  There is appropriated out of the general revenues of the State of Hawaii the sum of $9,282,684 or so much thereof as may be necessary for fiscal year 2012-2013 to match the federal disproportionate share hospital allowance allocated to the State.

     The sum appropriated shall be expended by the department of human services for the purposes of this Act.

     SECTION 3.  This Act shall take effect on July 1, 2012.

INTRODUCED BY:

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Report Title:

Federal Disproportionate Share Hospital Allowance; State Matching Funds

Description:

Appropriates $9,282,684 for fiscal year 2012-2013 to match the federal disproportionate share hospital allowance allocated to the State. Effective July 1, 2012.

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