HOUSE OF REPRESENTATIVES

H.B. NO.

92

TWENTY-NINTH LEGISLATURE, 2017

H.D. 1

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. The financial effect is further magnified by the fact that roughly seventy per cent of patients in some long-term care facilities are covered by the state medicaid program.

The legislature further finds that even with funds from the nursing facility sustainability program, nursing facilities in Hawaii experienced a statewide medicaid shortfall of approximately $16,000,000 in 2015. This body approved funding for an inflation adjustment to medicaid rates for long-term care facilities in 2016, the first increase in approximately seven years. That one-time appropriation of approximately $1,500,000 for fiscal year 2016-2017 generated an additional $2,500,000 in federal funds. It also helped to mitigate some of the losses that long-term care facilities incurred, even after the benefits of programs such as the nursing facility sustainability program were accounted for. Despite that infusion of funds, the medicaid shortfall will likely persist as the rising costs of care continue to outpace reimbursements.

The purpose of this Act is to preserve access to health care for medicaid recipients by providing an inflation adjustment to the long-term care reimbursement methodology used to reimburse facilities for medicaid recipients in fiscal years 2017-2018 and 2018-2019.

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

"346D‑   Inflation adjustment. (a) Beginning with fiscal year 2017-2018, 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 factor to the provider's annual costs or basic prospective payment system rates.

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

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2017-2018 and the same sum or so much thereof as may be necessary for fiscal year 2018-2019 to provide an inflation adjustment to long-term care facilities' provider-specific prospective payment rates.

The sums appropriated shall be expended by the department of human services for the purposes of this Act.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2075.


 


 

Report Title:

Long-term Care Facilities; Medicaid; Cost Increase; Inflation Adjustment; Appropriation

 

Description:

Applies an inflation adjustment factor to long-term care providers' annual costs or basic prospective payment system rates. Appropriates funds. (HB92 HD1)

 

 

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