STAND. COM. REP. NO. 238

Honolulu, Hawaii

RE: S.B. No. 820

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committees on Human Services and Health, to which was referred S.B. No. 820 entitled:

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

beg leave to report as follows:

The purpose and intent of this measure is to preserve access to health care for Medicaid recipients by extending the Nursing Facility Sustainability Program.

Your Committees received testimony in support of this measure from the Department of Human Services, Ohana Pacific Health, Hawai‘i Primary Care Association, Healthcare Association of Hawaii, and The Queen's Health Systems.

Your Committees find that the Nursing Hospital Sustainability Program and the Nursing Facility Sustainability Program Special Fund receive moneys from the nursing facility sustainability fee, which is used to draw down federal Medicaid matching funds. Your Committees further find that these moneys are used to increase reimbursements to the nursing facilities through capitation payments with a greater benefit to those providing proportionately more services to Medicaid recipients. The Nursing Facility Sustainability Program has successfully supported providers and seniors for nearly ten years, and it is important to note that this program is different and separate from other proposals that would levy a fee on insurance providers. Finally, your Committees find that no state general funds are used for this program, which is an important consideration given our current economic downturn.

As affirmed by the records of votes of the members of your Committees on Human Services and Health that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 820 and recommend that it pass Second Reading and be referred to your Committees on Ways and Means and Commerce and Consumer Protection.

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

________________________________ JARRETT KEOHOKALOLE, Chair

________________________________ JOY A. SAN BUENAVENTURA, Chair