STAND. COM. REP. NO. 2720

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 2396

       S.D. 2

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

 

Sir:

 

     Your Committee on Ways and Means, to which was referred S.B. No. 2396, S.D. 1, entitled:

 

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

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to preserve access to health care for Medicaid recipients by providing $1,900,000 in general funds to cover the costs of an inflationary adjustment to the long-term care reimbursement methodology used to reimburse facilities for Medicaid recipients.

 

     Your Committee received written comments in support of this measure from the Hawaii Health Systems Corporation Oahu Region, Healthcare Association of Hawaii, The Queen's Health Systems, Ann Pearl Rehabilitation and Health Care, The Clarence T.C. Ching Villas at St. Francis, Hale Kupuna Heritage Home, Ohana Pacific Management Company, Inc., One Kalakaua Senior Living, Pohai Nani, Puuwai O Makaha, Hale Makua Health Services, Hale Makua Long-Term Care, and two individuals.

 

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

 

     Your Committee finds that Medicaid reimbursement rates have not been adjusted for inflation since 2009 and the gap between operational costs and reimbursements for long-term care facilities in the State has widened considerably since then.  Your Committee further finds that providing an inflationary adjustment to the long-term care reimbursement methodology used to reimburse facilities for Medicaid recipients will help preserve access to health care for those and future Medicaid recipients.

 

     Your Committee notes that the Department of Human Services should look at the possibility of absorbing the inflationary adjustment for long-term care reimbursements in its annual Medicaid general fund budget of approximately $1,000,000,000.  Throughout the fiscal year, transfers are made within the program to cover fluctuating costs and support for this rate adjustment should be looked at similarly.

 

     Your Committee has amended this measure by:

 

     (1)  Changing the appropriation from $1,900,000 to an unspecified amount; and

 

     (2)  Changing the effective date to July 1, 2050, to facilitate further discussion on the 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 S.B. No. 2396, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2396, S.D. 2.

 

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

 

 

 

________________________________

JILL N. TOKUDA, Chair