STAND. COM. REP. NO. 2076

Honolulu, Hawaii

RE: S.B. No. 2798

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committees on Commerce, Consumer Protection, and Health and Human Services, to which was referred S.B. No. 2798 entitled:

"A BILL FOR AN ACT RELATING TO INTELLECTUAL AND DEVELOPMENTAL DISABILITIES MEDICAID WAIVER ADMINISTRATIVE CLAIMING SPECIAL FUND,"

beg leave to report as follows:

The purpose and intent of this measure is to create a special fund for the administration of the Medicaid Section 1915(c) Home and Community-Based Services Waiver for People with Intellectual and Developmental Disabilities, operated by the Department of Health.

Your Committees received testimony in support of this measure from the Department of Health and two individuals.

Your Committees find that the Developmental Disabilities Division of the Department of Health operates the Section 1915(c) Home and Community-Based Services Waiver for People with Intellectual and Developmental Disabilities and may claim allowable Medicaid federal payments for costs incurred in administering the waiver. This practice is known as administrative claiming and has become increasingly important in defraying the costs of administering Medicaid programs.

Your Committees received testimony indicating that the anticipated amount of administrative claiming beginning in fiscal year 2018-2019 is in the range of $700,000 to $1,200,000. However, the lack of a special fund in which to deposit administrative claims has impeded the Department of Health's ability to efficiently administer the waiver. Your Committees find that this measure is necessary to allow the Department of Health to properly and efficiently administer the waiver and continue serving the persons with intellectual and disabilities who receive services through the program.

Your Committees have amended this measure by 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 Commerce, Consumer Protection, and Health and Human Services that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2798, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2798, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Commerce, Consumer Protection, and Health and Human Services,

________________________________ JOSH GREEN, Chair

________________________________ ROSALYN H. BAKER, Chair