Bill Text: HI HB2292 | 2014 | Regular Session | Amended

Hawaii House Bill 2292 (Prior Session Legislation)

Bill Title: General Support for Health Care Payments (HMS 902); Emergency Appropriation ($)

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Enrolled - Dead) 2014-04-25 - Conference Committee Meeting will reconvene on Friday, 04-25-14 at 5:45pm in Conference Room 016. [HB2292 Detail]

Download: Hawaii-2014-HB2292-Amended.html

HOUSE OF REPRESENTATIVES	H.B. NO.	2292
TWENTY-SEVENTH LEGISLATURE, 2014		H.D. 1
STATE OF HAWAII		S.D. 2

A BILL FOR AN ACT

MAKING AN EMERGENCY APPROPRIATION TO THE DEPARTMENT OF HUMAN SERVICES FOR THE MED-QUEST DIVISION.

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

SECTION 1. This Act is recommended by the governor for immediate passage in accordance with section 9 of article VII of the Constitution of the State of Hawaii.

A critical fiscal emergency exists. A funding shortfall in the current fiscal year 2013-2014 in general support for health care payments (HMS 902) is projected because the Hawaii health connector has not yet reimbursed the department of human services for services and moneys provided to it by the department of human services.

The department of human services provided services and funding to or for the sole benefit of the Hawaii health connector to develop components of the health insurance exchange required by the federal Patient Protection and Affordable Care Act. In addition, the Centers for Medicare and Medicaid Services requires that 5.25 per cent of department design, development, and implementation costs, as well as maintenance and operations costs for the new Medicaid Kauhale On-Line Eligibility Assistance system, or KOLEA, be cost-allocated to the Hawaii health connector.

The services provided and the required 5.25 per cent cost allocation for KOLEA were paid for with general funds encumbered from HMS 902 with the understanding that the Hawaii health connector would reimburse the department of human services through the Hawaii health connector's own federal funds. While encumbered, the department of human services is unable to use these funds for other purposes.

As of November 1, 2013, the costs allocated to the Hawaii health connector that are owed or expected to be owed to the department of human services for state fiscal year 2013-2014 totaled $6,020,727 as follows:

(1) $4,329,956 for allocated costs incurred for work performed on KOLEA design, development, and implementation;

(2) $306,161 for allocated costs incurred for work performed on KOLEA maintenance and operations;

(3) $450,800 for costs incurred for work performed that would have allowed the Hawaii health connector system to be functional so individuals could browse for and select qualified health plans for both medicaid and the Hawaii health connector at the same time;

(4) $418,950 for costs incurred for work performed on the transition necessary to revise the Hawaii health connector system to separate the browsing and selection functions for medicaid and the Hawaii health connector after a design change;

(5) $296,940 for costs incurred for work performed to allow the Hawaii health connector to interface with the state data services hub;

(6) $52,920 for costs incurred for work performed to revise the file format and interface control document as previously agreed upon so that the Hawaii health connector could process electronically transferred files; and

(7) $165,000 for costs expected to be incurred for work to be performed as agreed by the Hawaii health connector to allow the Hawaii health connector to perform remote identity proofing.

As of January 29, 2014, the department had received reimbursements for the services provided in the total amount of $1,166,690 as follows:

(1) Costs incurred for work performed that would have allowed connector system functionality so individuals could browse for and select qualified health plans for both medicaid and the connector at the same time, in the amount of $450,800;

(2) Costs incurred for work performed on the transition necessary to revise the connector system to separate the browsing and selection functions for medicaid and the connector when the design was changed, in the amount of $418,950; and

(3) Costs incurred for work performed to allow the connector to interface with the state data services hub in the amount of $296,940.

Because the department has not received the remaining moneys owed from the connector, it is necessary for the department to request an emergency appropriation of $4,854,037. The requested emergency appropriation will ensure that the department is able to fund its core operations and continue to serve its beneficiaries.

The purpose of this Act is to appropriate $ in general funds for an emergency appropriation for fiscal year 2013-2014 for general support for health care payments (HMS 902) to address the funding shortfall in the medicaid program resulting from the delay in reimbursement.

SECTION 2. 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 2013-2014 to be used for general support for health care payments (HMS 902).

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

SECTION 3. This Act shall take effect on July 1, 2050.

Report Title:

General Support for Health Care Payments (HMS 902); Emergency Appropriation

Description:

Makes an emergency appropriation from the general revenues for Fiscal Year 2013-2014 to address the budget shortfall for the General Support for Health Care Payments (HMS 902) in the Department of Human Services. Effective 7/1/2050. (SD2)

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