STAND. COM. REP. NO. 1072-22

Honolulu, Hawaii

, 2022

RE: S.B. No. 3236

S.D. 2

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 S.B. No. 3236, S.D. 2, 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 a one-time enhanced payment equal to fifteen percent of Medicaid patient payments for fiscal year 2022-2023 to nursing facilities, community care foster family homes, and expanded adult residential care homes that are caring for Medicaid patients.

Your Committee received testimony in support of this measure from the East Hawaii Region of Hawaii Health System Corporation, Ohana Pacific Health, The Villas, Garden Isle Rehab & Nursing, Legacy Hilo Rehab & Nursing, Hale Makua Health Services, Aloha Nursing Rehab Centre, Islands Skilled Nursing and Rehabilitation, Hale Kūpuna Heritage Home, Hawai‘i Pacific Health, Pu‘uwai ‘O Makaha, Kalākaua Gardens, Ann Pearl Nursing Facility, Healthcare Association of Hawaii, Kaiser Permanente Hawaii, The Queen's Health Systems, Adult Foster Homecare Association of Hawaii, and seven individuals. Your Committee received comments on this measure from the Department of Human Services, Department of Budget and Finance, Hawaii Health Systems Corporation, and two individuals.

Your Committee finds that nursing facilities, community care foster family homes, and expanded adult residential care homes experienced significant economic and labor hardships due to the coronavirus disease 2019 pandemic, including a significant decrease in revenue and coupled with the increase in cost. Many of these facilities are still struggling to continue providing their essential and necessary services. Your Committee notes that despite receiving some federal relief, that relief only covered roughly thirty percent of the total pandemic-related losses. Your Committee acknowledges the work and dedication of nursing facilities and believes they require additional financial support to continue providing health care services to the residents of the State.

Your Committee has amended this measure by:

(1) Clarifying that the appropriation is to provide an enhanced payment of fifteen percent to any eligible facility in the State, as determined by the Department of Human Services, that provides care to Medicaid patients in Medicare-certified skilled nursing facilities, community care foster family homes, and expanded adult residential care homes; and

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

Your Committee notes that the requested appropriation for fiscal year 2022-2023 is $17,000,000. Your Committee further notes that if a different amount is ultimately appropriated, the percentage of Medicaid patient payments for fiscal year 2022-2023 would no longer equal fifteen percent and would need to be amended accordingly.

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 S.B. No. 3236, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3236, S.D. 2, 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