Bill > HB2144

This bill aims to reform Hawaii's Medicaid program by prohibiting financial risk-bearing entities, such as managed care organizations, from administering services, and instead mandates that the Department of Human Services contract with administrative services organizations (ASOs) for non-risk administrative functions like claims processing and prior authorization review. Providers, including physicians and hospitals, will be paid directly by the State's Medicaid agency on a fee-for-service basis, with care coordination services funded separately through community-based programs. The bill also establishes regional health hubs in each county for local oversight, a Medicaid Stakeholder Advisory Group for continuous improvement, and requires reports to the Legislature, while appropriating funds for the transition. The goal is to increase transparency, reduce administrative costs, and ensure care decisions are made in the best interest of patients rather than corporate profits.

Housing and Urban Affairs

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=2144&year=2026