STAND

 

STAND. COM. REP. NO.2588

Honolulu, Hawaii

, 2002

RE: S.B. No. 2026

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 2026 entitled:

"A BILL FOR AN ACT MAKING AN APPROPRIATION FOR INCREASED MEDICAID REIMBURSEMENT,"

begs leave to report as follows:

The purpose of this measure is to increase Medicaid and QUEST reimbursements to hospitals and physicians.

Specifically, this bill appropriates $1 for fiscal year 2002-2003 to increase the Medicaid reimbursement rate to hospitals and physicians who provide medical services to Medicaid participants in the fee-for-service program and to increase the capitation payments to QUEST plans to allow them to adequately cover the cost of providing these services.

Your Committee finds that there is a financial crisis in the health care industry. It is common knowledge that Medicare and Medicaid payments typically do not cover the actual costs of care. The Medicare Payment Advisory Commission recently recommended an increase in Medicare payments to most providers and that not doing so could jeopardize access to care for the elderly and disabled. This measure promotes such access to care by seeking to cover the actual cost of medical services.

For the purpose of further consideration, your Committee has amended this bill to change the $1 appropriation to a blank amount.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2026, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2026, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

		____________________________ BRIAN T. TANIGUCHI, Chair