HI HB1065

Appropriates $57,500,000 from general revenues and $96,400,000 in federal Medicaid funds for fiscal year 2010-2011 to address a Medicaid program funding shortfall.

Addresses a critical fiscal emergency caused by a 10-12% yearly increase in medical assistance recipients over the current and previous two fiscal years.

Ensures continued timely payments to contracted health plans and prevents disruption of medically necessary services to Medicaid recipients.

Prevents loss of $6,000,000 in federal funding that would result from deferring payments past June 30, 2011, when the Hawaii federal medical assistance percentage decreases from 62.63% to 51.79%.

Directs the Department of Human Services to expend the appropriated funds for health care payments and takes effect upon approval.