STAND. COM. REP. NO. 2644

Honolulu, Hawaii

RE:    S.B. No. 2466

       S.D. 2

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 2466, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO LONG-TERM CARE FACILITIES,"

begs leave to report as follows:

     The purpose and intent of this measure is to ensure access to health care for medicaid recipients by establishing a nursing facility sustainability fee and a special fund to receive moneys from the nursing facility sustainability fee in order to receive federal medicaid matching funds under the QUEST expanded medicaid section 1115 demonstration waiver.

     Your Committee received written comments in support of this measure from the Department of Human Services.  Your Committee received written comments on this measure from the Department of Budget and Finance; and Hawaii Health Systems Corporation.

     Your Committee finds that federal funding to help financially sustain Hawaii's long-term care facilities may be accessed through a provider fee.  Your Committee further finds that provider fees exist in forty-six states and the District of Columbia.  In Hawaii, provider fees would increase medicaid payments at a time when constraints on the State's budget have forced a reduction in payments and benefits.  The additional federal funds obtained via the fee program would reduce the amount of losses incurred by nursing facilities.

     Your Committee notes that this measure requires the Department of Human Services to consult with specific, named private entities prior to making certain determinations.  There are concerns that this requirement may violate the Equal Protection Clauses of the United States and Hawaii Constitutions.  Accordingly, your Committee intends to consult with the Attorney General's office or the Senate Majority Attorney on this issue.

     Your Committee has amended this measure by:

     (1)  Placing the new chapter established by this measure in Title 20, Hawaii Revised Statutes; and

     (2)  Making technical nonsubstantive amendments for purposes of style, clarity, and consistency.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2466, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2466, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair