Increases reimbursement rate for medicaid and QUEST dental services; appropriates funds for FY 2005-2006 and 2006-2007 to DHS.

A BILL FOR AN ACT

SECTION 1. The legislature finds that there is a high rate of dental caries among children and a high rate of dental disease among the people of Hawaii, in general. The ratio of dentists to residents in the State is promising. However, there is a shortage of dentists willing to serve Hawaii's neediest populations in urban and rural areas. The shortage has reached a critical low in neighbor islands.

The legislature further finds that the shortage is due to low dentist participation in the medicaid and QUEST programs. A 1998 survey by the Forum for State Health Policy Leadership, National Conference of State Legislatures, indicated that only thirty per cent of Hawaii's qualified dentists participate in medicaid or QUEST.

The legislature further finds that the low dentist participation rate in the medicaid and QUEST programs is due to the low reimbursement rate for dental services covered under medicaid and QUEST.

The purpose of this Act is to increase the reimbursement rate for dental services covered under medicaid and QUEST to a rate that more fairly compensates dentists and encourages more dentists to participate in the programs, and to appropriate funds to cover the increase.

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

"§346-   Dental care coverage; reimbursement rate. Beginning July 1, 2005, the reimbursement rate for dental services shall be       per cent of the seventy-fifth percentile of the 1991 Hawaii medicaid 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 2005-2006, and the same sum, or so much thereof as may be necessary for fiscal year 2006-2007, for the medicaid program to cover the reimbursement rate increase provided for in section 2 of this Act.

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, 2005.