STAND. COM. REP. NO. 144-22

Honolulu, Hawaii

, 2022

RE: H.B. No. 2394

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Pandemic & Disaster Preparedness, to which was referred H.B. No. 2394 entitled:

"A BILL FOR AN ACT RELATING TO MEDICAID PATIENT CARE,"

begs leave to report as follows:

The purpose of this measure is to appropriate funds to provide one-time enhanced payments to nursing facilities caring for Medicaid patients to assist with pandemic-related costs and lost revenues.

Your Committee received testimony in support of this measure from The Queen's Health Systems, Healthcare Association of Hawaii, and Hawai‘i Pacific Health. Your Committee received testimony in opposition to this measure from one individual. Your Committee received comments on this measure from the Department of Human Services, Department of Budget and Finance, and Hawaii Health Systems Corporation.

Your Committee finds that during the coronavirus disease 2019 (COVID-19) pandemic, nursing facilities experienced significant hardships such as increased costs of labor, personal protective equipment, supplies, testing, and more. In addition to the increase in costs, many nursing facilities saw a decrease in their revenues, which further exacerbated the financial difficulties of nursing facilities in the State. Despite receiving some federal relief, it only covered roughly thirty percent of the total pandemic-related losses. Your Committee acknowledges the work and dedication of nursing facilities but believes that many other health care facilities that were equally devastated by the COVID‑19 pandemic also require financial support to continue providing necessary services to the citizens of the State.

Accordingly, your Committee has amended this measure by:

(1) Changing the appropriation amount to an unspecified amount;

(2) Clarifying that any facility in the State that is licensed by Medicare to provide skilled nursing or intermediate care to Medicaid patients is eligible to receive enhanced payments;

(3) Changing the effective date to July 1, 2050, to encourage further discussion; and

(4) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

Your Committee notes that although your Committee changed the appropriation amount to an unspecified amount to encourage further discussion, the requested amount is $13,000,000 for these enhanced payments.

As affirmed by the record of votes of the members of your Committee on Pandemic & Disaster Preparedness that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2394, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2394, H.D. 1, and be referred to your Committee on Health, Human Services, & Homelessness.

Respectfully submitted on behalf of the members of the Committee on Pandemic & Disaster Preparedness,

____________________________

LINDA ICHIYAMA, Chair