STAND. COM. REP. NO. 884-04

Honolulu, Hawaii

, 2004

RE: S.B. No. 2929

S.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committees on Human Services and Housing and Health, to which was referred S.B. No. 2929, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO MEDICAID REIMBURSEMENT,"

beg leave to report as follows:

The purpose of this bill is to:

(1) Extend from June 30, 2003, to July 1, 2008, the deadline by which hospital-based and nonhospital-based Medicaid reimbursement rates for institutionalized long-term care must be made equal; and

(2) Make permanent the provision that payments to critical access hospitals be calculated on a cost basis using Medicare reasonable cost principles.

The Department of Human Services (DHS), Hawaii Long Term Care Association, Hawaii Health Systems Corporation, and Healthcare Association of Hawaii testified in support of this measure.

Your Committees find that implementing equity in Medicaid reimbursement rates will not be accomplished by the original deadline date of June 30, 2003. The extension will allow DHS time to allow for a gradual phase-in of the required change in reimbursement methodology.

As affirmed by the records of votes of the members of your Committees on Human Services and Housing and Health that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2929, S.D. 1, and recommend that it pass Second Reading and be referred to the Committee on Finance.

 

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

 

____________________________

DENNIS A. ARAKAKI, Chair

____________________________

MICHAEL PUAMAMO KAHIKINA, Chair