Bill > HB702

This bill seeks to address the challenges faced by in-home care services for Hawaii's elderly (kupuna) and people with disabilities by appropriating funds to increase Medicaid reimbursement rates. Based on a 2022 Milliman study, the legislation recognizes that current reimbursement rates are insufficient to cover the rising costs of care and are below competitive wage levels for direct care workers. The bill aims to raise reimbursement rates to the "high scenario" identified in the study, which uses wage assumptions at the seventy-fifth percentile of the U.S. Department of Labor's Bureau of Labor Statistics. The motivation stems from research showing that 65% of Hawaii residents over 45 are concerned about aging in place, and 83% want to remain in their homes as they age. By increasing funding, the bill hopes to help providers like Kokua Healthcare, which currently cannot serve Medicaid clients due to low reimbursement rates, and to ensure that essential in-home services remain available. The appropriation will be made from general state revenues for fiscal years 2025-2026 and 2026-2027, with the condition that the Department of Human Services obtains maximum available federal matching funds, potentially amplifying the financial impact of the increased funding.

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

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=702&year=2026