Bill > SB298

This bill aims to increase funding for Medicaid in-home services in Hawaii to help kupuna (seniors) and people with disabilities remain in their homes. Based on a 2021 study and a 2022 Milliman report, the legislature found that current reimbursement rates for in-home care services are too low, causing significant challenges for service providers. The bill highlights that most direct care workers are being paid below market rates, which makes it difficult to recruit and retain caregivers. The proposed solution is to increase reimbursement rates to the "high scenario" identified in the Milliman study, which would set wages at the 75th percentile of the U.S. Department of Labor's Bureau of Labor Statistics. By appropriating funds for this purpose, the bill seeks to address wage pressures, improve care accessibility, and support Medicaid clients who want to receive care in their own homes. The bill would provide funding for fiscal years 2025-2026 and 2026-2027, with the expectation that federal matching funds will also increase, thereby providing a larger overall impact on reimbursement rates for in-home service providers.

Budget and Finance, Health and Social Services, Housing and Urban Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=298&year=2026