STAND. COM. REP. NO. 310

Honolulu, Hawaii

RE:    S.B. No. 262

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Madam:

     Your Committee on Human Services and Housing, to which was referred S.B. No. 262 entitled:

"A BILL FOR AN ACT RELATING TO THE NURSING FACILITY SUSTAINABILITY PROGRAM,"

begs leave to report as follows:

     The purpose and intent of this measure is to continue the nursing facility sustainability program by extending the sunset date to June 30, 2016, and appropriating funds out of the nursing facility sustainability program special fund.

     Your Committee received testimony in support of this measure from the Department of Human Services, Hawaii Health Systems Corporation, Healthcare Association of Hawaii, Hawaii Primary Care Association, The Queen's Health Systems, and Chamber of Commerce Hawaii.  Your Committee received comments on this measure from the Department of the Attorney General.

     Your Committee finds that the Legislature created the nursing facility sustainability program to increase Medicaid payments to nursing facilities in recognition that Medicaid payments to nursing facilities were below the actual costs of care.  Your Committee further finds that the majority of residents in Hawaii's nursing facilities are Medicaid enrollees, and the nursing facility sustainability program ensures that they have access to quality care.

     Your Committee has amended this measure by:

     (1)  Inserting language to preserve the exemptions of the nursing facility sustainability program from the central service expenses and administrative expenses assessments through December 31, 2016; and

     (2)  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 and Housing that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 262, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 262, 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 and Housing,

____________________________

SUZANNE CHUN OAKLAND, Chair