Bill > SB1647

This bill addresses financial challenges faced by primary care physicians serving Med-QUEST recipients (Hawaii's Medicaid program) by appropriating $20,000,000 for each of the fiscal years 2025-2026 and 2026-2027 to provide direct payments to these physicians. The legislation is motivated by concerns about declining physician reimbursement rates and the dramatic reduction in private medical practices in Hawaii, from 75% ten years ago to only 10% currently. The bill recognizes that low baseline reimbursements from commercial health insurance, Medicaid, and Medicare plans, which lack cost-of-living increases and overhead reimbursements, are making it difficult for physicians to maintain financially viable practices. The purpose is to ensure primary care physicians can continue serving Med-QUEST recipients without experiencing revenue losses, with the funds to be administered by the Department of Human Services. The bill is set to take effect on July 1, 2025, and aims to provide financial support that could help stabilize healthcare access for Medicaid recipients by supporting the physicians who serve them.

Health and Social Services

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1647&year=2026