SB1678 SD1

Part I

SECTION 1. Chapter 432, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§432- Reimbursement; medicare fee schedule. Effective January 1, 2008, and for each succeeding calendar year thereafter, each participating medical services provider within the network of a mutual benefit society in the State shall be reimbursed for the provision of medical services to patients, whether a patient is a participant in a medicaid or QUEST program or not, at a rate not less than one hundred per cent of the medicare reimbursement amount that is in effect for the current year and updated for each calendar year thereafter."

Part II

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

"§346- Reimbursement; hospitals and nursing facilities. Effective January 1, 2008, and for each of the succeeding five calendar years thereafter, each hospital or nursing facility licensed by the state department of health shall be reimbursed for the provision of medical services to patients, regardless of whether a patient is a participant in a medicaid program, at a rate of one hundred ten per cent of the medicaid reimbursement rate in effect for the current year and updated for each calendar year thereafter."

SECTION 3. Chapter 431, Hawaii Revised Statutes, is amended by adding a new section to article 10A to be appropriately designated and to read as follows:

"§431:10A- Reimbursement; hospitals and nursing facilities. Effective January 1, 2008, and for each succeeding calendar year thereafter, each hospital or nursing facility licensed by the state department of health shall be reimbursed for the provision of medical services to patients, regardless of whether a patient is a participant in a medicaid program, at a rate not less than one hundred per cent of the medicare reimbursement amount applicable to Hawaii that is in effect for the current year and updated for each calendar year thereafter."

SECTION 4. Chapter 432D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§432D- Reimbursement; hospitals and nursing facilities. Effective January 1, 2008, and for each succeeding calendar year thereafter, each hospital or nursing facility licensed by the state department of health shall be reimbursed for the provision of medical services to patients, regardless of whether a patient is a participant in medicaid, at a rate not less than one hundred per cent of the medicare reimbursement amount that is in effect for the current year and updated for each calendar year thereafter."

SECTION 5. Section 346-59, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

"(b) Rates of payment for outpatient hospital services, but excluding emergency room services, and to providers of medical care who are individual practitioners, including doctors of medicine, dentists, podiatrists, psychologists, osteopaths, optometrists, and other individuals providing services, shall be based upon the Hawaii medicaid fee schedule. The amounts paid shall not exceed the maximum permitted to be paid individual practitioners or other [~~individuals~~] providers under federal law and regulation, the medicare fee schedule for the current year, the state limits as provided in the appropriation act, or the provider's billed amount.

[The appropriation act shall indicate the percentage of the medicare fee schedule for the year 2000 to be used as the basis for establishing the Hawaii medicaid fee schedule. For any subsequent adjustments to the fee schedule, the legislature shall specify the extent of the adjustment in the appropriation act.] Rates under the medicaid fee schedule shall be adjusted each year for inflation by multiplying the rates in effect on June 30 of each year by the sum of one plus the inflation factor for the prior fiscal year. The inflation factor shall be based on the latest available actual, or estimated if actual is not available, national index for providers of medical care, who are individual practitioners."

SECTION 6. 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 2007-2008, and the same sum, or so much thereof as may be necessary for fiscal year 2008-2009, for the purposes of this part.

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

Part III

SECTION 7. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 8. This Act shall take effect on July 1, 2020; provided that section 5 shall take effect on July 1, 2007.

THE SENATE	S.B. NO.	1678
TWENTY-FOURTH LEGISLATURE, 2007		S.D. 1
STATE OF HAWAII