STAND. COM. REP. NO. 3397

Honolulu, Hawaii

RE:    H.B. No. 1754

       H.D. 2

       S.D. 2

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 1754, H.D. 2, S.D. 1, 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 establish a medicaid buy-in program for workers with disabilities that will encourage individuals with disabilities to work while concomitantly retaining their access to medicaid.

This measure also requires the Department of Health to operate a pilot medicaid buy-in program until the Department of Humans Services implements the permanent program by July 1, 2017.

     Your Committee received written comments in support of this measure from the Department of Health, the State Council on Developmental Disabilities, Community Alliance for Mental Health, Healthcare Association of Hawaii, Hawaii Primary Care Association, and one individual.  The Department of Human Services submitted written comments.

     Your Committee finds that Hawaii is one of only five states that has not implemented a medicaid buy-in program.  Many disabled individuals have a disincentive to find employment or increased employment because doing so will cause them to lose various medicaid benefits and supports.  Your Committee believes that a medicaid buy-in program will remove the disincentive to work by providing individuals with disabilities the opportunity to increase their income while maintaining health care benefits.  

     Your Committee has amended this measure by:

(1)  Clarifying that the appropriation for the University of Hawaii Center on Disabilities Studies for outreach and training programs be made for the medicaid buy-in pilot program for workers with disabilities;

(2)  Changing the appropriation in section 6 to an unspecified amount to facilitate further discussion; and

(3)  Making technical nonsubstantive amendments for the 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 H.B. No. 1754, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1754, H.D. 2, S.D. 2.

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

____________________________

DAVID Y. IGE, Chair