STAND. COM. REP. NO. 3629

Honolulu, Hawaii

RE: S.R. No. 4

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Human Services, to which was referred S.R. No. 4 entitled:

"SENATE RESOLUTION URGING THE DEPARTMENT OF HUMAN SERVICES TO STUDY THE FEASIBILITY OF INCREASING PAYMENT TO HAWAII'S COMMUNITY CARE FOSTER FAMILY HOMES AND EXPANDED ADULT RESIDENTIAL CARE HOMES FOR MEDICAID RECIPIENTS,"

begs leave to report as follows:

The purpose and intent of this measure is to request the Department of Human Services to:

(1) Review the existing payment model for Medicaid reimbursement for patients who require nursing home‑level of care in the community;

(2) Study the feasibility of increasing the Medicaid reimbursement rate for Community Care Foster Family Home (CCFFH) and Expanded Adult Residential Care Home (E‑ARCH) care providers; and

(3) Determine the overall effect of increasing the Medicaid reimbursement rates for CCFFH and E-ARCH care providers.

Your Committee received testimony in support of this measure from one individual.

Your Committee finds that it is in the State's best interest to ensure the overall health, well-being, and quality of life of our kupuna. However, due to the lack of beds in CCFFHs and E‑ARCHs available for Medicaid beneficiaries, many kupuna, including those whose sole source of income is from social security, are left with no accessible options for stable, long-term care. The study requested under this measure will provide policy makers with the necessary information to determine whether it is feasible to increase the Medicare reimbursements rates for CCFFH and E-ARCH care providers to enable them to increase the number of beds available to Medicaid beneficiaries.

Your Committee notes the testimony of the Department of Human Services stating that its Med-QUEST Division is currently considering a feasibility study of rate increases as part of a Home and Community Based Services (HCBS) financial plan in response to a section of the American Rescue Plan Act that seeks to strengthen, enhance, and expand HCBS. The Department also states that rate increases are likely needed for not only CCFFHs and E-ARCHs but may also, other types of HCBS providers and services.

Accordingly, your Committee has amended this measure by:

(1) Requesting the Department of Human Services to include other types of HCBS in its feasibility study and determination;

(2) Amending its title; and

(3) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the record of votes of the members of your Committee on Human Services that is attached to this report, your Committee concurs with the intent and purpose of S.R. No. 4, as amended herein, and recommends its adoption in the form attached hereto as S.R. No. 4, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Human Services,

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JOY A. SAN BUENAVENTURA, Chair