STAND. COM. REP. NO. 1339

Honolulu, Hawaii

, 2025

RE: S.B. No. 298

S.D. 1

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 S.B. No. 298, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HUMAN SERVICES,"

begs leave to report as follows:

The purpose of this measure is to appropriate funds to the Department of Human Services to increase funding for Medicaid in-home services.

Your Committee received testimony in support of this measure from the State Council on Developmental Disabilities; Executive Office on Aging; Disability and Communication Access Board; AARP Hawai‘i; Hawaii Self-Advocacy Advisory Council; and one individual. Your Committee received comments on this measure from the Department of Human Services.

Your Committee finds that the majority of Hawaii's kupuna prefer to age in place, remaining in their own homes rather than transitioning to institutional care. Additionally, in-home services, such as assistance with daily living activities, are essential in supporting kupuna and individuals with disabilities to maintain their independence while reducing the financial burden associated with nursing facilities. However, a 2022 actuarial study revealed that Medicaid reimbursement rates for in-home care services are not keeping pace with labor market demands, leading to workforce shortages and wage pressures in the home care industry. This measure seeks to address these challenges by appropriating funds to increase Medicaid reimbursement rates for in-home services, ensuring that care providers receive adequate compensation and that more kupuna can access the support needed to safely age in their homes.

Your Committee has amended this measure by:

(1) Clarifying certain findings in the preamble related to reimbursement rates for Medicaid in-home services;

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

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

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 S.B. No. 298, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 298, S.D. 1, 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