STAND. COM. REP. NO. 3723

Honolulu, Hawaii

RE: H.B. No. 1804

H.D. 1

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 1804, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO LONG-TERM CARE FINANCING,"

begs leave to report as follows:

The purpose and intent of this measure is to address the future costs of, and access to, long-term care services for Hawaii residents.

Specifically, this measure establishes, and appropriates money for, a joint legislative Long-Term Care Financing Advisory Commission and requires the Commission to:

(1) Examine the feasibility of different financing options for long-term care services and supports;

(2) Contract with a part-time project director to support the Commission's work;

(3) Procure consulting services for actuarial assessment, policy analysis and development, and public education and stakeholder engagement;

(4) Seek funding for its work from various public and private sources; and

(5) Submit reports to the Legislature prior to the 2027, 2028, and 2029 Regular Sessions.

Your Committee received written comments in support of this measure from the Department of Human Services, State Health Planning and Development Agency, Healthcare Association of Hawaii, AARP Hawaii, Navian Hawaii, LeadingAge Pacific West, and five individuals.

Your Committee received written comments on this measure from the Executive Office on Aging.

Your Committee finds that without a sustainable financing framework for long-term care, Hawaii's families will be forced to shoulder increasingly unsustainable financial burdens to access long-term care services. Therefore, your Committee believes that the State must conduct a comprehensive, data-driven study of feasible financing strategies to address these costs. Because establishing a successful long-term care program will be a complicated endeavor, your Committee further finds that a framework and scope of work must be carefully developed before the study is conducted.

Accordingly, your Committee has amended this measure by:

(1) Removing language establishing and appropriating moneys for a joint legislative Long-Term Care Financing Advisory Commission;

(2) Inserting language requiring, and appropriating moneys to, the Executive Office on Aging to develop a framework and scope of work for a study that:

(A) Examines the feasibility, impacts, and costs of different public and private financing options for long-term care services and supports, including options to pay for those long-term care services and supports; and

(B) Determines which long-term care financing mechanisms have objective, evidence-based merit;

(3) Requiring the Executive Office on Aging to submit a report to the Legislature prior to the convening of the Regular Session of 2027; and

(4) Authorizing the Executive Office on Aging to contract with the University of Hawaii to perform the activities required by this measure.

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. 1804, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1804, H.D. 1, S.D. 2.

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

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DONOVAN M. DELA CRUZ, Chair