STAND. COM. REP. NO. 2368

Honolulu, Hawaii

RE:    S.B. No. 2009

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committees on Human Services and Health, to which was referred S.B. No. 2009 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 quality, cost-effective health care for Hawaii residents who are uninsured, newly uninsured, underinsured, potential Medicaid enrollees, or Medicaid enrollees.

     Your Committees received testimony in support of this measure from the Department of Health, Hawaii Primary Care Association, Lanai Community Health Center, Malama I Ke Ola Health Center, Hamakua Health Center, Waianae Coast Comprehensive Health Center, Waimanalo Health Center, Waikiki Health, Hoola Lahui Hawaii, Community Alliance for Mental Health, Hawaii Pacific Health, and six individuals.  Your Committees received comments on this measure from the Department of Human Services and two individuals.

     Your Committees find that community health centers serve the State's uninsured, underinsured, and low-income population, in addition to one-fourth of the State's Medicaid members, through a patient-centered delivery system.  In 2012, community health centers saved the health care system $182,000,000 by providing timely, effective care and care management that reduced unnecessary emergency room, inpatient, and specialty utilization.  Your Committees further find that funding is needed to synchronize the trajectory of community health center growth with Hawaii's implementation of the federal Patient Protection and Affordable Care Act.  It is in the State's interest to ensure access to primary, behavioral, dental, and preventative health care for all of its residents.  Your Committees support the funding requests in the Executive Supplemental Budget submitted by the Governor for adult dental benefits for Medicaid enrollees, out-stationed eligibility workers, and the health homes program under Medicaid.

     Your Committees have received testimony on this measure regarding funding for health homes.  Your Committees find that this measure appropriates $2,000,000 out of general revenues for both private providers and federally qualified community health centers to establish health care homes.  Additionally, the measure appropriates $2,000,000 from the community health centers special fund to establish health care homes at federally qualified community health centers.  Your Committees further find that the intent of this measure is to draw down maximum federal funds, which due to the 90 percent - 10 percent match are expected to be $18,000,000 to match the appropriation from general revenues for health care homes, and $18,000,000 to match the appropriation from the community health centers special fund for health care homes at federally qualified community health centers.

     Your Committees have amended this measure by:

     (1)  Amending the amount of funds appropriated for basic adult dental benefits to Medicaid enrollees from $4,800,000 to $4,000,000 because it will take time to re-establish the program and, therefore, a full year of operating funds is not necessary;

     (2)  Amending the amount of funds appropriated for outreach and eligibility services from $800,000 to $320,000 to reflect the Department of Human Services' request in the Executive Supplemental Budget that includes federal matching funds;

     (3)  Changing the appropriation amount for the establishment of health homes under Medicaid services from $2,000,000 to $2,016,000 to reflect the Department of Human Services' request in the Executive Supplemental Budget; and

     (4)  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 Health that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2009, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2009, 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 Health,

____________________________ JOSH GREEN, Chair

____________________________ SUZANNE CHUN OAKLAND, Chair