STAND. COM. REP. NO. 3001

Honolulu, Hawaii

RE:    H.B. No. 2448

       H.D. 2

       S.D. 1

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committees on Human Services and Judiciary and Labor, to which was referred H.B. No. 2448, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO MEDICAID,"

beg leave to report as follows:

     The purpose and intent of this measure is to assist the Department of Human Services in recovering monies owed by third parties responsible for injuries to Medicaid patients.  Specifically, this measure:

     (1)  Establishes a formula for calculating the amount to be contributed by the State toward a claimant's attorney's fees and costs, in lieu of recovering the full amount;

     (2)  Defines the term "medical institution";

     (3)  Clarifies that the lien amount in the Notice of the Lien sent by the Department of Human Services for reimbursement of Medicaid benefits shall be accompanied by an itemized list of payments made by the Department; and

     (4)  Requires the entire lien amount to be presumed to be valid absent a good faith basis contesting the amount or validity of specific line item charges in the lien.

     Your Committees received testimony in support of this measure from the Department of Human Services, Department of the Attorney General, and Hawaii Association for Justice.

     Your Committees find that this measure will assist the Department of Human Services in the Department's collections of reimbursements for Medicaid liens, improve Medicaid program integrity, and ensure that funding for the Medicaid program is used to provide health insurance coverage to those truly in need by:

     (1)  Determining whether or not a lien may be properly placed on a Medicaid recipient's real property;

     (2)  Reducing the need for a court hearing to prove the amount of the lien and expediting the determination of the amount of restitution that must be paid;

     (3)  Establishing a formula to resolve the issue as to what amount should be contributed by the State toward a claimant's attorney's fees and costs; and

     (4)  Clarifying the amount that a Medicaid recipient must reimburse Medicaid for benefits paid out.

     Your Committees have amended this measure by:

     (1)  Changing the effective date from January 7, 2059, to July 1, 2050, to ensure further discussion; and

     (2)  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 Judiciary and Labor that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2448, H.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2448, H.D. 2, S.D. 1, and be referred to the Committee on Ways and Means.

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

____________________________ CLAYTON HEE, Chair

____________________________ SUZANNE CHUN OAKLAND, Chair