STAND. COM. REP. NO.  309-26

 

Honolulu, Hawaii

                , 2026

 

RE:   H.B. No. 1668

      H.D. 1

 

 

 

 

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

 

Madame:

 

     Your Committee on Human Services & Homelessness, to which was referred H.B. No. 1668 entitled:

 

"A BILL FOR AN ACT RELATING TO MEDICAID,"

 

begs leave to report as follows:

 

     The purpose of this measure is to require the Department of Human Services to exclude full earned income for individuals with disabilities who are between the ages of sixteen and sixty-four years when determining eligibility for Medicaid.

 

     Your Committee received testimony in support of this measure from the Hawaiʻi State Council on Developmental Disabilities; Hawaii Disability Rights Center; Hawaiʻi Self-Advocacy Advisory Council; and six individuals.  Your Committee received comments on this measure from the Department of Human Services.

 

     Your Committee finds that existing Medicaid eligibility rules create a harmful "benefits cliff" that discourages employment by forcing individuals with disabilities to choose between earning income and retaining life-sustaining Medicaid services.  This measure addresses this structural barrier by allowing individuals with disabilities to earn income without jeopardizing their Medicaid coverage, thereby supporting employment, independence, and self-determination.

 

     Your Committee has amended this measure by:

 

     (1)  Changing the effective date to July 1, 3000, to encourage further discussion; and

 

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

 

     As affirmed by the record of votes of the members of your Committee on Human Services & Homelessness that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1668, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1668, H.D. 1, and be referred to your Committee on Finance.

 

 

Respectfully submitted on behalf of the members of the Committee on Human Services & Homelessness,

 

 

 

 

____________________________

LISA MARTEN, Chair