Bill > SB1564

This bill addresses the need for improved home and community-based care services for Hawaii's elderly population (known as "kupuna") by appropriating state funds to increase Medicaid reimbursement rates for certain long-term care services. The bill is based on a 2022 study by Milliman that found current reimbursement rates were inadequate, with care providers paying wages below the Bureau of Labor Statistics' benchmarks and struggling to attract and retain healthcare workers. The legislation aims to increase funding by $2,127 per client per month, bringing the total payment to $3,824 per client per month for service providers, including licensed developmental disability domiciliary homes, community care foster family homes, certified adult foster homes, and expanded adult residential care homes. The funding will be sought for fiscal years 2025-2026 and 2026-2027, with the department of human services required to seek maximum federal matching funds. The bill acknowledges the challenges faced by care providers, such as high inflation, inability to offer competitive benefits, and difficulty competing with higher-paying medical facilities. The ultimate goal is to improve affordable long-term care options that allow elderly residents to remain close to their families and familiar healthcare providers.

Budget and Finance, Health and Social Services

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1564&year=2026