Report Title:

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

 

Description:

Appropriates funds for (1) the adoption of special needs children, (2) to increase SSI income, (3) a grant in aid to the Legal Aid Society of Hawaii for a federal Medicare advocacy project. (SD1)

THE SENATE

S.B. NO.

2500

TWENTY-FIRST LEGISLATURE, 2002

S.D. 1

STATE OF HAWAII

  

 

A BILL FOR AN ACT

 

Relating to 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 with a finalized adoption and an additional $2,000 for 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 that child and $2,500 in administrative costs. Therefore, the purpose of this Part is to require the department of human services to contract with the Legal Aid Society of Hawaii to provide legal assistance to adoptive families to assist at least one hundred thirty families adopt special needs children. This Part also appropriates $78,000 to the department for the fifty per cent of state match for the one hundred thirty adoptions.

SECTION 2. The department of human services shall contract with the Legal Aid Society of Hawaii to provide legal assistance to adoptive families to assist at least one hundred thirty families 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 $78,000, or so much thereof as may be necessary for fiscal year 2002-2003, for the purpose of providing the state match for federal funds available for non-recurring adoption expenses and providing funds for a contract with the Legal Aid Society of Hawaii to provide 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 (SSI) is a federally funded financial assistance program which includes children suffering from disabilities. The legislature further finds that special needs children have been traditionally overlooked for SSI benefits because of the high case loads for state social workers, resulting in only 22 per 1,000 children in Hawaii receiving SSI benefits with this being 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 SSI benefits will receive $550 per month which can be used to provide a range of support services including counseling, tutoring, learning equipment needs, supervised child care, clothing, food, and other needs. With parents paying for these services, this may reduce the cost to the State for proving the same services. Therefore, the purpose of this Part is to fund a pilot project on the island of Hawaii to provide legal services to assist in the application of SSI benefits and appeal in all appropriate denials of applications. This project shall target at least one hundred special needs children who are eligible for SSI benefits.

SECTION 5. The department of education shall provide the Legal Aid Society of Hawaii with access to files of children who participate in the Individualized Educational Program (IEP) on the Island of Hawaii, and inform the Legal Aid Society of Hawaii of all IEP hearings so that it may attend these hearing and assess whether the child is eligible for SSI benefits.

SECTION 6. There is appropriated out of the general revenues of the State of Hawaii the sum of $180,000, or so much thereof as may be necessary for fiscal year 2002-2003, for the department of human services to pay the Legal Aid Society of Hawaii $1,300 for each successful application, $1,800 for each successful reconsideration review, and $2,300 for each successful appeal to obtain SSI benefits for at least one hundred applicants.

The sum appropriated shall be expended by the department of human services 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 drain 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 and that situation stimulated the initiation of a privately-funded Medicare Advocacy Project of the Legal Aid Society of Hawaii to work towards maximizing those federal Medicare benefits. The legislature further finds that according to Health Care Financing Administration data for 1997, only 571 per 1,000 of Hawaii's elderly Medicare beneficiaries received home health care and skilled nursing care compared to 917 in Montana, 930 in Idaho, and 940 in New Hampshire - all states with similar populations.

The legislature further finds that in terms of Medicare home health care and skill 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 the period of fiscal years l996 to 2000 the State of Hawaii reported on its quarterly Federal Health Care Financing Agency (HCFA) reports that its Third Party Liability (TPL) effort with respect to Medicare cost avoidance resulted in $34,630,090, while Montana's TPL effort resulted in $209,511,516; Idaho’s TPL effort resulted in $409,834,706; and New Hampshire’s TPL 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 the Legal Aid Society of Hawaii to implement a one 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 Legal Aid Society of Hawaii 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 $250,000, or so much thereof as may be necessary for fiscal year 2002-2003, for a grant-in-aid to the Legal Aid Society of Hawaii to accomplish the goals of Part III of this Act.

The sum 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, 2002.