Bill > HB725

This bill addresses the need for improved Medicaid home and community-based services for kupuna (Hawaiian term for elderly) in Hawaii by proposing increased funding for various residential care and support services. The bill is based on a 2021 AARP study that found 75% of Hawaii residents over 45 want affordable long-term care options in their community. A 2022 study by Milliman revealed that current median direct care wages for home and community-based service providers were below labor market standards, making it difficult to recruit and retain qualified staff. The legislation aims to appropriate funds to increase Medicaid reimbursement rates for services in licensed developmental disability domiciliary homes, community care foster family homes, certified adult foster homes, and Type II expanded adult residential care homes. Specifically, the bill intends to increase funding by $2,127 per client per month, bringing the total payment to $3,824 per client per month when combined with federal matching funds. The appropriation would cover fiscal years 2025-2026 and 2026-2027, with the Department of Human Services tasked with obtaining maximum federal matching funds. The bill is designed to help providers offer more competitive wages, potentially improve caregiver benefits, and support the ability of kupuna to receive care close to home and maintain connections with family and familiar healthcare providers.

Housing and Urban Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=725&year=2026