STAND. COM. REP. NO.  976-14

Honolulu, Hawaii

                , 2014

RE:   S.B. No. 2031

      S.D. 2

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Health, to which was referred S.B. No. 2031, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO HEALTH,"

begs leave to report as follows:

The purpose of this measure is to improve access to medical supplies and equipment for patients by requiring vendors or suppliers who have been awarded contracts through the Centers for Medicare and Medicaid Services Durable Medical Equipment, Prosthetics, Orthotics, and Supplies Competitive Bidding Program to have a physical presence in the State.

The Queen's Health Systems, Healthcare Association of Hawaii, Rehabilitation Hospital of the Pacific, and several individuals supported this measure.  The Department of Human Services, Department of the Attorney General, Hawaii Association of Health Plans, and Hawaii Medical Service Association opposed this measure.

     Your Committee has amended this measure by changing its effective date to July 1, 2150, to facilitate continued discussion.

     Due to the concerns raised during discussion on this measure, your Committee believes that further consideration and discussion are necessary regarding the requirement that vendors or suppliers have a physical presence in the State to be awarded a contract through the Centers for Medicare and Medicaid Services Durable Medical Equipment, Prosthetics, Orthotics, and Supplies Competitive Bidding Program.  Your Committee requests the Department of the Attorney General to provide follow up information to the Committee on Consumer Protection & Commerce on the licensing and in-state requirements for suppliers under the State of Tennessee's Competitive Bidding Program.

     As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2031, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2031, S.D. 2, H.D. 1, and be referred to the Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Health,

____________________________

DELLA AU BELATTI, Chair