STAND. COM. REP. NO. 2215

Honolulu, Hawaii

RE:    S.B. No. 2227

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 Health, to which was referred S.B. No. 2227 entitled:

"A BILL FOR AN ACT RELATING TO HEALTH,"

beg leave to report as follows:

     The purpose and intent of this measure is to provide funding for quality, cost-effective, direct health care through community health centers for Hawaii residents who are uninsured, including those who will be disenrolled from the Medicaid QUEST program pending eligibility changes in April 2012.

     Your Committees received testimony in support of this measure from the Department of Health, the Hawaii Island Community Development Corporation, the Hawai‘i Primary Care Association, the Healthcare Association of Hawaii, Ho‘ola Lahui Hawai‘i, the Kalihi-Palama Health Center, the Lana‘i Community Health Center, the Waianae Coast Comprehensive Health Center, and two individuals.  Your Committees received testimony in opposition to this measure from the Department of Human Services.  Your Committees received comments on this measure from the Waikiki Health Center.

     Your Committees find that approximately twenty-five percent of the patients at community health centers are uninsured.  As Medicaid eligibility reductions are implemented this year, providers anticipate an increase in the uninsured population.  Your Committees also find that nonprofit community health centers have proven to be effective in providing comprehensive, primary care services to residents of poor and disadvantaged communities.  Community health centers also assist in keeping other components of the health care system viable by reducing the numbers of patients who require emergency care and reducing the impact of uncompensated care on other providers.

Your Committees note that if the maximum income allowed for QUEST eligibility decreases from 200 percent to 133 percent of the federal poverty level, approximately 3,000 to 3,500 adults will lose QUEST Adult benefits.  Since the average monthly capitation rate is $160 per month per adult, the estimated cost of providing annual QUEST Adult benefits to an average of 3,250 persons is approximately $6,300,000.

     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. 2227 and recommend that it pass Second Reading 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