STAND. COM. REP. NO.1145-02

Honolulu, Hawaii

, 2002

RE: S.B. No. 2867

S.D. 1

H.D. 1




Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii


Your Committee on Finance, to which was referred S.B. No. 2867, S.D. 1, entitled:


begs leave to report as follows:

The purpose of this bill is to set Medicaid payments at a level closer to the actual costs of care provided.

Hawaii Nurses Association, Chamber of Commerce of Hawaii, Healthcare Association of Hawaii, Hawaii Health Systems Corporation, Hawaii Medical Association, and Hawaii Long Term Care Association submitted testimony in support of this bill. The Department of Human Services (DHS) and the Department of Budget and Finance submitted testimony in opposition to this bill.

Your Committee has amended this bill by:

(1) Deleting the requirement that DHS propose adjustments to per capita Medicaid reimbursements within the limits of appropriations and based on an increasing factor when negotiating future contracts with health plans under the QUEST program;

(2) Changing the appropriations to $1 to facilitate further discussion; and

(3) Making technical, nonsubstantive changes for purposes of style, clarity, and consistency.

As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2867, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2867, S.D. 1, H.D. 1.

Respectfully submitted on behalf of the members of the Committee on Finance,