Bill > SB322

This bill addresses funding and improvements for Medicaid home- and community-based services (HCBS) in Hawaii, based on a comprehensive rate study conducted by the Department of Human Services' med-QUEST division. The legislation recognizes the significant impacts of the COVID-19 pandemic on long-term care delivery and seeks to reimagine healthcare reimbursement to support patient care quality, staff wages, and system efficiency. The bill appropriates funds for fiscal years 2025-2026 and 2026-2027 to fully fund estimated payment increases for HCBS providers, with a particular focus on supporting providers serving groups with high service utilization, such as case management agencies, community care foster family homes, adult residential care homes, and adult day health centers. The rate study, conducted with actuarial firm Milliman, examined wage pressures, labor market conditions, and the evolving needs of an aging population, aiming to create a more sustainable and responsive long-term care system. Importantly, the bill acknowledges emerging federal changes in healthcare payment methods and seeks to align state Medicaid reimbursement strategies accordingly, with the ultimate goal of improving care quality, supporting healthcare workers, and meeting the changing preferences of patients toward home- and community-based services. The bill is set to take effect on December 31, 2050.

Budget and Finance, Health and Social Services

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=322&year=2026