THE SENATE	S.B. NO.	397
THIRTY-SECOND LEGISLATURE, 2023		S.D. 2
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO PROFESSIONAL MEDICAID SERVICES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that nearly one third of Hawaii's residents, and half of all keiki, are enrolled in medicaid. Since the start of the coronavirus disease 2019 pandemic in March 2020, medicaid enrollment has increased by forty per cent. However, timely access to providers can prove difficult, especially in rural areas where health care providers are in short supply. In 2022, the State had a shortfall of more than seven hundred fifty full-time physicians and almost four thousand nonphysician, patient-facing health care workers, such as nurses, technicians, and patient service representatives.

The legislature further finds that due to the significant number of Hawaii residents receiving medicaid coverage, health care providers often receive less reimbursement from medicaid than from medicare or commercial insurances for the same service. While some providers, including critical access hospitals, community health centers, and providers who perform certain services, are reimbursed at cost or at the same rates as medicare, most individual health care professionals, including physicians, psychiatrists, psychologists, and advanced practice registered nurses, are not. Lesser reimbursements contribute to the challenges providers face in sustaining their practices, leading some health care providers to limit or refuse to accept medicaid patients. Investing in medicaid by matching medicaid reimbursement levels with those of medicare would allow more health care providers to accept medicaid patients, improving access to care.

Therefore, the purpose of this Act is to appropriate funds to increase medicaid reimbursements to eligible health care professionals to match the current medicare fee schedule.

SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2023-2024 and the same sum or so much thereof as may be necessary for fiscal year 2024-2025 to increase medicaid reimbursements to eligible health care professionals in the State by up to one hundred per cent of the current medicare rates.

The sums appropriated shall be expended by the department of human services for the purposes of this Act.

SECTION 3. The appropriations made by this Act shall not lapse at the end of the fiscal year for which the appropriation is made; provided that all moneys from the appropriation unencumbered as of June 30, 2025, shall lapse as of that date.

SECTION 4. This Act shall take effect on December 31, 2050.

Report Title:

Medicaid; Reimbursements; Medicare; Appropriation

Description:

Appropriates funds to increase Medicaid reimbursements to eligible health care professionals in the State by up to one hundred per cent of the current Medicare rates. Effective 12/31/2050. (SD2)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.