HOUSE OF REPRESENTATIVES

H.B. NO.

1943

TWENTY-EIGHTH LEGISLATURE, 2016

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to long-term care facilities.

 

 

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

 


SECTION 1. The legislature finds that long-term care facilities in the State face major financial challenges in providing quality health care for Hawaii residents. These challenges are largely the result of payments for medicaid enrollees that do not cover the actual costs of care. Long-term care facilities have not received an inflationary update to their reimbursement rates for a number of years and, as such, have seen the gap between costs and reimbursements widen considerably. The financial effect is further magnified by the fact that roughly seventy per cent of patients in long-term care facilities are covered by the state medicaid program.

The purpose of this Act is to preserve access to health care for medicaid recipients by providing an inflationary adjustment to the long-term care reimbursement methodology used to reimburse facilities for medicaid recipients.

SECTION 2. Chapter 346D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"346D‑   Inflationary adjustment. (a) The department of human services shall recognize an annual cost increase to a long-term care facility's provider-specific prospective payment rate by applying an inflation adjustment to the provider's historical costs or basic prospective payment system rates.

(b) The annual inflation factor shall be the rate approved by the federal government in the medicaid state plan.

(c) The cost increase shall only apply for fiscal year 2016-2017."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

 

INTRODUCED BY:

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Report Title:

Long-term Care Facilities; Cost Increase; Inflationary Adjustment

 

Description:

Provides an inflationary adjustment to the methodology used to reimburse facilities for the long-term care of medicaid recipients for fiscal year 2016-2017.

 

 

 

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