STAND. COM. REP. NO. 1146

Honolulu, Hawaii

RE: H.B. No. 713

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Health and Human Services, to which was referred H.B. No. 713, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent 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 are a crucial part of the health care system and include higher-level skilled care such as physical therapy, occupational therapy, speech therapy, wound care, and health management of complex chronic conditions. Your Committee further finds that reimbursement for home health services is declining, which is resulting in a high vacancy rate for health care providers in home health agencies and affecting patient access to care. Your Committee additionally finds that home health agencies were not included as part of the various rate studies recently conducted by the United States Department of Health and Human Services and therefore have not had their rates reviewed or updated as part of those legislative efforts. Accordingly, this measure's rate study to be conducted by the Department of Human Services for Medicaid home health services in the State will serve as a foundation for future informed decision-making and support the continued delivery of high-quality, accessible home health services to Medicaid recipients in the State.

Your Committee has amended this measure by inserting an effective date of December 31, 2050, to encourage further discussion.

Your Committee notes that this measure contains an unspecified appropriation amount. Should your Committee on Ways and Means choose to deliberate on this measure, your Committee respectfully requests that it consider inserting an appropriation amount of $500,000, comprised of $250,000 in state funds and $250,000 in matching federal funds, to conduct a rate study on Medicaid home health services in the State.

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

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

________________________________

JOY A. SAN BUENAVENTURA, Chair