STAND. COM. REP. NO.  206-12

Honolulu, Hawaii

                , 2012

RE:   H.B. No. 2448

      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 Committee on Human Services, to which was referred H.B. No. 2448 entitled:

"A BILL FOR AN ACT RELATING TO MEDICAID,"

begs leave to report as follows:

The purpose of this measure is to establish a formula for calculating the amount to be contributed by the State towards a claimant's attorney's fees and costs, in an action to recover costs for medical assistance or burial payment where a Medicaid recipient was injured, suffered a disease, or died under circumstances creating a tort or other liability or payment obligation against a third party.

The Department of the Attorney General and the Department of Human Services supported the measure.  The Hawaii Association for Justice opposed the measure.

     Your Committee notes the concerns of the Hawaii Association for Justice that the amendments to current law proposed by this measure contradict the directive of the United States Supreme Court that states' recovery for Medicaid expenses in third-party liability cases is restricted to recovery from portions of a damage or settlement award specifically allocated or allocable to reimbursement for medical damages.  Your Committee notes that this testifier expressed that this measure creates arbitrary or otherwise improper methods of allocating costs and determining reimbursement.

     Your Committee has amended this measure by:

     (1)  Inserting definitions of "medical institution" and "value of damages" for purposes of Medicaid liens;

     (2)  Specifying that the lien amount in a notice of lien sent by the Department of Human Services for reimbursement of Medicaid benefits shall be presumed to be valid; and

     (3)  Making technical, nonsubstantive changes for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Human Services that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2448, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2448, H.D. 1, and be referred to the Committee on Judiciary.

Respectfully submitted on behalf of the members of the Committee on Human Services,

____________________________

JOHN M. MIZUNO, Chair