Report Title:

Adoption of Special-Needs Children; Federal SSI for Disabled Children; Medicare Advocacy Project

Description:

Appropriates funds for:

(1) The adoption of special-needs children;

(2) A grant-in-aid to a nonprofit legal services provider to increase SSI income; and

(3) A grant-in-aid to a nonprofit legal services provider for a federal Medicare advocacy project (SB1580 HD1).

THE SENATE

S.B. NO.

1580

TWENTY-SECOND LEGISLATURE, 2003

H.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to ADVOCACY FOR human services.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

PART I

SECTION 1. The legislature finds that the federal government, through the federal adoption assistance program, provides annual financial incentives to the State of $4,000 for each foster child whose adoption is finalized and up to an additional $2,000 for a special-needs adoption. These federal assistance payments of up to $2,000 are also made available with a fifty per cent state match to pay for non-recurring adoption expenses, such as court costs and attorney's fees incurred by the adoptive families.

The legislature further finds that each child removed from foster care and adopted by a family saves the State approximately $529 in monthly expenses for the child and $2,500 in administrative costs. Therefore, the purpose of this part is to require the department of human services to contract with a nonprofit legal services provider for legal assistance to adoptive families to assist at least one hundred thirty families to adopt special-needs children. This part also appropriates $        to the department partly to cover the fifty per cent state matching fund requirements for the one hundred thirty adoptions.

SECTION 2. The department of human services shall contract with a nonprofit legal services provider for legal assistance to adoptive families to assist at least one hundred thirty families to adopt special-needs children. The contract amount shall not exceed $1,200 per adoption case.

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $        or so much thereof as may be necessary for fiscal year 2003-2004 for the purpose of providing the required state matching funds for federal funds available for non-recurring adoption expenses and providing funds for a contract with a nonprofit legal services provider for legal assistance to adoptive families.

The sum appropriated shall be expended by the department of human services for the purposes of part I of this Act.

PART II

SECTION 4. The legislature finds that the supplemental security income program is a federally funded financial assistance program that also assists children suffering from disabilities. The legislature further finds that special-needs children have been traditionally overlooked for supplemental security income benefits because of the high case loads for state social workers, resulting in only twenty-two per one thousand children in Hawaii receiving supplemental security income benefits, reflecting the lowest eligibility rate of any state in the nation.

The legislature further finds that special-needs children and their families who become eligible for supplemental security income benefits will receive $550 per month which can be used to provide a range of support services, including counseling, tutoring, learning equipment, supervised child care, clothing, food, and other needs. With parents paying for these services, this may reduce the cost to the State for providing the same services.

Therefore, the purpose of this part is to fund a pilot project in the county of Hawaii to provide legal services to assist in the application for supplemental security income benefits and appeal in all denials of applications. This project shall target at least one hundred special-needs children who are eligible for supplemental security income benefits.

SECTION 5. The department of education shall contract with and provide a nonprofit legal services provider with access to files of children who participate in the individualized educational program in the county of Hawaii, and inform the nonprofit legal services provider of all individualized educational program hearings so that it may attend these hearings and assess whether the child is eligible for supplemental security income benefits.

SECTION 6. There is appropriated out of the general revenues of the State of Hawaii the sum of $        or so much thereof as may be necessary for fiscal year 2003-2004 for a grant-in-aid to the nonprofit legal services provider, $1,300 for each successful application, $1,800 for each successful reconsideration review, and $2,300 for each successful appeal to obtain supplemental security income benefits for at least one hundred applicants; provided that any unexpended or unencumbered balance as of June 30, 2004, shall lapse as of that date.

The sum appropriated shall be expended by the department of education for the purposes of part II of this Act.

PART III

SECTION 7. The legislature finds that federal moneys can be a significant source of funding to support Hawaii's health and human services programs but, unfortunately, these federal funds have not been maximized for a variety of reasons, thus causing a direct and unnecessary burden on Hawaii's taxpayers. For example, federal Medicare benefits for Hawaii's individuals who require home health care services or maintenance in a skilled nursing facility have not been maximized. The legislature further finds that according to data for 1997 from the Health Care Financing Administration (known as The Centers for Medicare and Medicaid Services as of July 1, 2001), only five hundred seventy-one per one thousand of Hawaii's elderly Medicare beneficiaries received home health care and skilled nursing care compared to nine hundred seventeen in Montana, nine hundred thirty in Idaho, and nine hundred forty in New Hampshire--all states with similar population sizes.

The legislature further finds that in terms of Medicare home health care and skilled nursing facility care, Hawaii expended the lowest percentage of federal Medicare dollars at only $30,300,000, while Montana expended $64,300,000; Idaho expended $106,000,000; and New Hampshire expended $87,500,000.

The legislature further finds that for fiscal years l996 to 2000, the State of Hawaii reported on its quarterly federal Health Care Financing Administration report that its third-party liability effort with respect to Medicare cost avoidance resulted in $34,630,090, while Montana's third-party liability effort resulted in $209,511,516; Idaho's third-party liability effort resulted in $409,834,706; and New Hampshire's third-party liability effort resulted in $162,599,344.

Therefore, the purpose of this part is to appropriate funds for the department of human services to contract with a nonprofit legal services provider to implement a two-year pilot project to maximize collections and cost avoidance from the federal Medicare program. The goal of this project is provide the State with a $1,500,000 cost savings through cost-avoidance and collection efforts.

SECTION 8. The department of human services shall make available to the nonprofit legal services provider all information required to adequately identify claims for dually eligible Medicare and medicaid recipients.

SECTION 9. There is appropriated out of the general revenues of the State of Hawaii the sum of $        or so much thereof as may be necessary for fiscal year 2003-2004 and the same sum or so much thereof as may be necessary for fiscal year 2004-2005 for a grant-in-aid to a service provider to accomplish the goals of part III of this Act by maximizing federal benefits available to Hawaii residents dually eligible for benefits under medicaid and Medicare.

The sums appropriated shall be expended by the department of human services for the purposes of part III of this Act.

PART IV

SECTION 10. This Act shall take effect on July 1, 2003.