HB702 appropriates state general funds for fiscal years 2025-2026 and 2026-2027 to increase funding for Medicaid in-home services in Hawaii. The bill is aimed at raising reimbursement levels for home- and community-based care providers, including homemaker/companion/chore services, personal care and attendant care, and private duty nursing, with the stated goal of making it easier for kupuna and people with disabilities to remain in their homes rather than enter institutional care.
The bill’s findings explain that the Legislature believes current reimbursement rates are too low to cover rising labor and operating costs, and that the most recent rate study is outdated. It directs the Department of Human Services to seek the maximum available federal matching funds, which would increase the overall amount available for provider reimbursement. The bill is set to take effect on July 1, 3000, a placeholder effective date that suggests the measure is in draft form rather than ready for immediate implementation.
Impact
If enacted, HB702 would increase state spending on Medicaid in-home services and likely raise reimbursement rates for providers serving Medicaid clients in home and community-based settings. It would affect the Department of Human Services, particularly the Med-QUEST division, and could improve provider participation and service availability for seniors, people with disabilities, and other Medicaid recipients who rely on in-home care. The bill does not amend substantive eligibility rules, but it would change funding levels and could indirectly influence access to long-term care options across the state.
Sentiment
The bill’s stated purpose and findings reflect strong support for expanding in-home care and aging in place, with a clear emphasis on affordability, workforce pressure, and access to services. The available context shows no recorded committee debate or votes, so there is no documented opposition in the materials provided. Overall, the bill appears to be framed positively as a response to rising costs and provider shortages.
Contention
The main policy issue is whether reimbursement rates should be increased to the high scenario from the prior Milliman study, which the bill says is necessary to address wage pressure and current costs. The Legislature’s findings cite examples of providers being unable to serve Medicaid clients because reimbursement is too low, suggesting the likely point of contention is fiscal cost versus service adequacy. Another practical issue is the requirement that DHS secure maximum federal matching funds, which may affect how much state money is ultimately needed and how quickly the increase can be implemented.
A resolution to direct the Clerk of the House of Representatives to only present to the Governor enrolled House bills finally passed by both houses of the One Hundred Third Legislature.
Relating to nonsubstantive additions to, revisions of, and corrections in enacted codes, to the nonsubstantive codification or disposition of various laws omitted from enacted codes, and to conforming codifications enacted by the 88th Legislature to other Acts of that legislature.