STAND. COM. REP. NO.  505-12

Honolulu, Hawaii

                , 2012

RE:   H.B. No. 2138

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committees on Human Services and Health, to which was referred H.B. No. 2138 entitled:

"A BILL FOR AN ACT RELATING TO MEDICAID,"

beg leave to report as follows:

The purpose of this measure is to prevent illegitimate claims and increase efficiency in Hawaii's public health insurance programs by requiring the Department of Human Services to:

     (1)  Implement state-of-the-art technologies in its Medicaid and Children's Health Insurance Programs to increase the Department's ability to detect and prevent waste, fraud, and abuse in the programs; and

     (2)  Require the Department to submit a report on its progress before the convening of the 2013 Legislature.  

Two concerned individuals supported the measure.  The Hawaii Government Employees' Association, AFSCME Local 152, AFL-CIO supported the intent of the measure.  The Department of Human Services and Hawaii Medical Service Association opposed the measure.  

     Your Committees note the Department of Human Services' testimony that the measure, as received by your Committees, would increase providers' burdens, could worsen recipient access, and would require a substantial appropriation.  Your Committees also note that the stakeholders should continue to work with integrity to prevent waste, fraud, and abuse in Hawaii's health insurance programs.  Your Committees also find that Medicaid payments in Hawaii totaled $1,700,000,000 in 2012.

     Accordingly, your Committees have amended this bill by:

     (1)  Establishing instead, a task force to recommend measures and strategies to prevent waste, fraud, and abuse in the Medicaid and Children's Health Insurance Programs;

     (2)  Repealing the task force on July 1, 2013; and

     (3)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     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 H.B. No. 2138, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2138, H.D. 1, and be referred to the Committee on Finance.

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

____________________________ RYAN I. YAMANE, Chair

____________________________ JOHN M. MIZUNO, Chair