STAND. COM. REP. NO. 2196

Honolulu, Hawaii

RE: S.B. No. 2089

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Health and Human Services, to which was referred S.B. No. 2089 entitled:

"A BILL FOR AN ACT RELATING TO MENTAL HEALTH,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Expand the services eligible for Medicaid Prospective Payment System reimbursement to include certain services furnished by a Federally Qualified Health Center or rural health clinic and provided by mental health professionals under the clinical supervision of a licensed mental health professional;

(2) Require the Department of Human Services to adopt rules to allow medical assistance reimbursement payments for services provided to recipients eligible for Medicaid benefits under any plan under Medicaid managed care programs in the State by unlicensed mental health professionals under the clinical supervision of a licensed mental health professional; and

(3) Require the Department of Human Services to seek necessary waivers and any additional approvals from the Centers for Medicare and Medicaid Services.

Your Committee received testimony in support of this measure from the State Health Planning and Development Agency, Office of Hawaiian Affairs, and one individual.

Your Committee received comments on this measure from the Department of Human Services and Hawaii Medical Association.

Your Committee finds that the Med-QUEST program, which is the State's Medical program, currently allows unlicensed mental health trainees and pre‑licensed providers to deliver services that may be reimbursed at prospective payment system rates when appropriate supervision requirements are met, including circumstances in which the licensed clinician is engaged with the patient for key portions of the visit. Your Committee further finds that this approach has long-standing alignment with federal expectations and has supported care access in community settings. This measure reinforces operational consistency and reduces ambiguity for clinics by placing this framework more clearly into state policy.

Your Committee has amended this measure by:

(1) Inserting an implementation date of July 1, 2028;

(2) Inserting an effective date of January 30, 2050, to encourage further discussion; and

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

As affirmed by the record of votes of the members of your Committee on Health and Human Services that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2089, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2089, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Health and Human Services,

________________________________

JOY A. SAN BUENAVENTURA, Chair