STAND. COM. REP. NO. 1842

Honolulu, Hawaii

RE: H.B. No. 222

H.D. 2

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 222, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HUMAN SERVICES,"

begs leave to report as follows:

The purpose and intent of this measure is to ensure the achievement of fair and full funding of Medicaid medical care and long-term supports and services providers.

Specifically, this measure:

(1) Adjusts the method by which the Department of Human Services calculates payments to providers of medical care and long-term supports and services; and

(2) Appropriates funds.

Your Committee received written comments in support of this measure from AARP Hawaii, Adult Foster Homecare Association of Hawaii, Alliance of Professional Primary Care Administrators, Alliance of Residential Care Administrators, Community Home Care Association of Hawaii, Providers Helping Hands of Hawaii, United Caregivers of Hawaii, and seventeen individuals.

Your Committee received written comments on this measure from the Department of Human Services.

Your Committee 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 insurance for the same service. Your Committee also finds that lesser reimbursements contribute to the challenges that health care providers face in sustaining their practices, leading some providers to limit or refuse to accept Medicaid patients.

Your Committee has amended this measure by:

(1) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure; and

(2) Making a technical nonsubstantive amendment for purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 222, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 222, H.D. 2, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

DONOVAN M. DELA CRUZ, Chair