STAND. COM. REP. NO. 2206

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 2396

       S.D. 1

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

 

Sir:

 

     Your Committees on Human Services and Commerce, Consumer Protection, and Health, to which was referred S.B. No. 2396 entitled:

 

"A BILL FOR AN ACT RELATING TO LONG-TERM CARE FACILITIES,"

 

beg leave to report as follows:

 

     The purpose and intent of this measure is to provide an inflationary adjustment to the methodology used to reimburse facilities for the long-term care of Medicaid recipients for fiscal year 2016-2017.

 

     Your Committees received testimony in support of this measure from the Oahu Region Hawaii Health Systems Corporation; Oahu Nursing Rehab Center; Hale Makua Health Services; Healthcare Association of Hawaii; Nuuanu Hale; Ohana Pacific Management Company, Inc.; Palolo Chinese Home; The Arc in Hawaii; and four individuals.  Your Committees received comments on this measure from the Department of Human Services.

 

     Your Committees find that long-term care facilities face major financial challenges in providing quality health care for Hawaii residents.  In many long-term care facilities in Hawaii, Medicaid patients comprise 70 to 80 percent of the facilities' patients, and Medicaid reimbursements do not cover the actual costs of care for these patients.  Since Hawaii has the fastest-aging population in the nation, funding for long-term care facilities is crucial to help seniors maintain access to services they desperately need.

 

     Your Committees have amended this measure by:

 

     (1)  Removing language stating that the cost increase shall only apply for fiscal year 2016-2017;

 

     (2)  Inserting an appropriation to the Department of Health for $1,900,000 to reimburse facilities for the long-term care of Medicaid patients;

 

     (3)  Inserting a repeal date of June 30, 2017; and

 

     (4)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

 

     As affirmed by the records of votes of the members of your Committees on Human Services and Commerce, Consumer Protection, and Health that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2396, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2396, S.D. 1, and be referred to your Committee on Ways and Means.

 

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

 

________________________________

ROSALYN H. BAKER, Chair

 

________________________________

SUZANNE CHUN OAKLAND, Chair