STAND. COM. REP. NO. 192

Honolulu, Hawaii

RE:    S.B. No. 920

       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. 920 entitled:

"A BILL FOR AN ACT RELATING TO MEDICAID,"

begs leave to report as follows:

     The purpose and intent of this measure is to increase the Medicaid reimbursement rate paid by the State to equal the Medicare services payment rate for primary and acute care.

     Your Committee received testimony in support of this measure from the Hawaii Health Systems Corporation, Hawaii Medical Association, The Queen's Health Systems, and one individual.  Your Committee received comments on this measure from the Department of Human Services.

     Your Committee finds that inadequate Medicaid reimbursement rates put a financial strain on healthcare providers and decrease the probability that Medicaid enrollees will be accepted as patients by healthcare providers.  Enhanced Medicaid reimbursement rates have been successful in helping millions of people nationwide gain access to necessary health services.

     Your Committee supports the Governor's budget request of $37,000,000, of which approximately $17,500,000 are general funds, for Medicaid reimbursements at 83.7 percent of Medicare.  Your Committee notes that this percentage includes behavioral health and prenatal care but does not include obstetric care.

     Your Committee has amended this measure by inserting language to include obstetric care among the types of services for which the increased Medicaid reimbursement rate shall apply.

     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. 920, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 920, 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