STAND. COM. REP. NO. 2014

Honolulu, Hawaii

RE: H.B. No. 1270

H.D. 1

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 1270, H.D. 1, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to preserve access to health care for Medicaid recipients.

Specifically, this measure:

(1) Extends the hospital sustainability program for two years;

(2) Amends exemptions from the hospital sustainability fee;

(3) Increases the allowable aggregate fees charged to a hospital from 3.5 percent to 4.0 percent; and

(4) Appropriates funds out of the hospital sustainability program special fund for fiscal years 2019-2020 and 2020-2021.

Your Committee received written comments in support of this measure from the Department of Human Services, Healthcare Association of Hawaii, Hawaii Pacific Health, The Queen's Health Systems, Kaiser Permanente, Chamber of Commerce Hawaii, and Hawaii Medical Service Association.

Your Committee finds that the hospital sustainability program has helped acute care facilities treat the most vulnerable patients in the State since its inception in 2012. Your Committee further finds that the program has helped to ensure that patients, especially those with low incomes, are able to access quality, affordable care.

Your Committee has amended this measure by:

(1) Making corrections to the quoted text of section 5 of Act 217, Session Laws of Hawaii 2012, as amended by Act 141, Session Laws of Hawaii 2013, as amended by Act 123, Session Laws of Hawaii 2014, as amended by Act 70, Session Laws of Hawaii 2015, as amended by Act 60, Session Laws of Hawaii 2016, as amended by Act 59, Session Laws of Hawaii 2017, in the measure to accurately reflect the printed version of the session law; and

(2) Changing the effective date to:

(A) July 1, 2050, for sections 7 and 8; and

(B) June 29, 2050, for the remainder of the measure,

to facilitate further discussion on the measure.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1270, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1270, H.D. 1, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

DONOVAN M. DELA CRUZ, Chair