Bill > SB877

This bill addresses the critical need to support in-home services for Hawaii's seniors (kupuna) and people with disabilities by appropriating $16,160,000 for fiscal years 2025-2026 and 2026-2027 to increase Medicaid reimbursement rates for home care services. The legislation is based on research showing that 65% of Hawaii residents over 45 are concerned about aging in place, and 83% want to stay in their homes as they get older. A 2022 study by Milliman revealed that current reimbursement rates for in-home care services are significantly below competitive wage levels, making it difficult for providers to offer services to Medicaid clients. The bill aims to raise reimbursement rates to the "high scenario" identified in the study, which would help address wage pressures for direct care workers and ensure better access to essential home care services. The appropriated funds are conditional on the Department of Human Services securing the maximum available federal matching funds, which would further increase the total funding for these critical services. By supporting in-home care, the bill seeks to help individuals remain in their homes instead of more expensive institutional care, while supporting the workforce that provides these vital services.

Health and Social Services

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=877&year=2025