Increases the reimbursement rate to dentists providing Medicaid-covered dental services to    % of the 75^th percentile of the 1991 fee profile. Appropriates $       for FY 2001-2002 and $       for FY 2002-2003 to pay for the rate increase, to be expended by the department of human services.

A BILL FOR AN ACT

SECTION 1. The legislature finds that Hawaii's Medicaid reimbursement rates for dental services are among the lowest in the nation. These fees have not been changed since 1990 when they were set at sixty per cent of the seventy-fifth percentile of the 1991 fee profile. This rate is less than the overhead costs to provide Medicaid-covered dental services.

The legislature also finds that the participation rate for Hawaii dentists in the Medicaid program is among the lowest in the nation and that this low rate is related to the low reimbursement rate for Medicaid-covered dental services. Federal funds will match 53.85 per cent of the cost of Medicaid dental services including any fee increases.

The purpose of this Act is to increase the reimbursement rate for Medicaid-covered dental services to one that more fairly compensates dentists for care and encourages more dentists to participate as providers in the Medicaid program and to appropriate funds to cover the fee increase.

SECTION 2. The department of human services shall increase the reimbursement rate for dental services covered by the Medicaid program to       per cent of the seventy-fifth percentile of the 1991 fee profile.

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 2001-2002, and the same sum, or so much thereof as may be necessary for fiscal year 2002-2003 for the Medicaid program to cover the reimbursement rate increase provided for in section 2. The sums appropriated shall be expended by the department of human services for the purposes of this Act.

SECTION 4. This Act shall take effect on July 1, 2001.