STAND. COM. REP. NO. 1095

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 1726
                                        H.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Health and Human Services, to which was
referred H.B. No. 1726, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO FAMILY HEALTH SERVICES,"

begs leave to report as follows:

     The purpose of this measure is to make an appropriation to
the Department of Human Services (DHS) to raise the income
eligibility level for the medically needy program to one hundred
thirty-three per cent of the assistance allowance.

     Your Committee received testimony in support of this measure
from the DHS, Life Foundation, and a private citizen.

     The Medicaid program allows a state to expand coverage to
persons who are above the Medicaid income level but are still of
low income and are deemed "medically needy."  The DHS has the
authority to establish the income eligibility level for the
medically needy program at one hundred thirty-three per cent of
the assistance allowance, subject to appropriation of state funds
along with federal matching assistance.  This measure will allow
the DHS to implement such eligibility level and provide services
to more financially and medically needy individuals.

     As affirmed by the record of votes of the members of your
Committee on Health and Human Services that is attached to this
report, your Committee is in accord with the intent and purpose
of H.B. No. 1726, H.D. 1, and recommends that it pass Second
Reading and be referred to the Committee on Ways and Means.

 
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                                   STAND. COM. REP. NO. 1095
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                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Health and Human
                                   Services,



                                   ______________________________
                                   SUZANNE CHUN OAKLAND, Chair

 
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