STAND. COM. REP. NO. 2077-22

Honolulu, Hawaii

, 2022

RE: S.C.R. No. 10

S.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Health, Human Services, & Homelessness, to which was referred S.C.R. No. 10, S.D. 1, entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING THE DEPARTMENT OF HUMAN SERVICES TO STUDY THE FEASIBILITY OF INCREASING THE MEDICAID REIMBURSEMENT RATES FOR COMMUNITY CARE FOSTER FAMILY HOMES, EXPANDED ADULT RESIDENTIAL CARE HOMES, AND OTHER TYPES OF HOME AND COMMUNITY BASED SERVICE CARE PROVIDERS AND SERVICES,"

begs leave to report as follows:

The purpose of this measure is to request that the Department of Human Services review the existing Medicaid reimbursement rates and study the feasibility and determine the overall impact of increasing these rates for community care foster family homes, expanded adult residential care homes, and other types of home and community based service care providers and services.

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

Your Committee finds that community care foster family homes and expanded adult residential care homes provide additional options for patients requiring nursing home-level care throughout Hawaii. Your Committee further finds that the initial federal Medicaid waiver for the State's community care foster family homes program was approved based on the program's initial success as a high-quality alternative to nursing home placement for Medicaid patients that cost two-thirds or less than placement in a nursing home. However, the level of reimbursement for community care foster homes has not kept pace with that two-thirds requirement. As a result, many community care foster homes refuse to accept Medicaid patients and save empty beds for patients with private insurance, which reduces the number of beds available for Medicaid patients.

This measure addresses the ongoing lack of lower cost long-term care services in Hawaii by requesting that the Department of Human Services review existing Medicaid reimbursement rates and study the feasibility and determine the overall impact of increasing these rates for community care foster family homes, expanded adult residential care homes, and other types of home and community based service care providers and services.

As affirmed by the record of votes of the members of your Committee on Health, Human Services, & Homelessness that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 10, S.D. 1, and recommends that it be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Health, Human Services, & Homelessness,

____________________________

RYAN I. YAMANE, Chair