STAND. COM. REP. NO. 259

Honolulu, Hawaii

, 2025

RE: H.B. No. 713

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Human Services & Homelessness, to which was referred H.B. No. 713 entitled:

"A BILL FOR AN ACT RELATING TO A RATE STUDY FOR HOME HEALTH SERVICES,"

begs leave to report as follows:

The purpose of this measure is to appropriate funds for the Department of Human Services to conduct a rate study for Medicaid home health services in Hawaii.

Your Committee received testimony in support of this measure from the Healthcare Association of Hawaii and one individual. Your Committee received comments on this measure from the Department of Human Services.

Your Committee finds that home health services play a critical role in the health care system by providing skilled care, such as physical therapy, wound care, and chronic condition management, to homebound individuals who require medical support but do not need hospitalization. However, federal Medicare cuts and Medicaid payment shortfalls have led to financial losses for home health agencies, resulting in a reduction in the proportion of Medicaid patients they serve. Additionally, rising labor costs and a thirty-nine percent vacancy rate for health care positions in home health settings make it difficult to recruit and retain qualified providers. Therefore, this measure provides funding for the Department of Human Services to conduct a Medicaid home health services rate study, ensuring informed decision-making to support the future sustainability of home health care in the State.

Your Committee has amended this measure by:

(1) Changing the appropriation to an unspecified amount;

(2) Specifying that the appropriation shall be for only fiscal year 2025-2026, as the rate study proposed by this measure can be completed within one fiscal year;

(3) Changing the effective date to July 1, 3000, to encourage further discussion; and

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

Your Committee respectfully respects your Committee on Finance, should it deliberate on this measure, to consider an appropriation amount of $250,000, as the cost of the study will be $500,000, with fifty percent of that cost to be covered by federal funds.

As affirmed by the record of votes of the members of your Committee on Human Services & Homelessness that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 713, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 713, H.D. 1, and be referred to your Committee on Finance.

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

____________________________

LISA MARTEN, Chair