STAND. COM. REP. NO. 2892

Honolulu, Hawaii

RE:    H.B. No. 1754

       H.D. 2

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Human Services, to which was referred H.B. No. 1754, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO PERSONS WITH DISABILITIES,"

begs leave to report as follows:

     The purpose and intent of this measure is to encourage individuals with disabilities to gain employment and improve their employment opportunities by establishing a Medicaid buy-in program.

     Your Committee received testimony in support of this measure from the Department of Health, State Council on Developmental Disabilities, Hawaii Disability Rights Center, Hawaii Primary Care Association, Healthcare Association of Hawaii, Lanakila Pacific, and Community Alliance for Mental Health.  Your Committee received comments on this measure from the Department of Human Services.

     Your Committee finds that employment is a key factor in self-determination and quality of life for individuals with disabilities and that encouraging employment promotes economic development in the State and the well-being of Hawaii's citizens with disabilities.  Your Committee also finds that it is essential for individuals with disabilities who obtain employment to maintain their Medicaid eligibility so that they do not lose valuable medical benefits and support services.  Your Committee recognizes that the Medicaid buy-in program proposed in this measure would not be operational until July 1, 2017, at the latest, yet there are individuals with disabilities currently in danger of losing their medical benefits and services if they obtain employment.

     Accordingly, your Committee has amended this measure by:

     (1)  Inserting language that establishes a Medicaid buy-in pilot program that must be implemented by July 1, 2015, will terminate on June 30, 2017, and will serve one hundred individuals with disabilities who are no longer eligible for Medicaid benefits because they obtained employment;

     (2)  Inserting an appropriation in the amount of $400,000 to the Department of Health for the Medicaid buy-in pilot program;

     (3)  Adding language requiring the Department of Health to assist the Department of Human Services with its report to the Legislature so that the report includes an update on the Medicaid buy-in pilot program; and

     (4)  Making technical, nonsubstantive amendments 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. 1754, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1754, 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 Committee on Human Services,

____________________________

SUZANNE CHUN OAKLAND, Chair