Relating To The Nursing Facility Sustainability Program.
If enacted, SB1361 would solidify the sustainability fee program indefinitely, which is crucial in increasing Medicaid payments to nursing facilities. The bill appropriates $15 million from the nursing facility sustainability special fund for fiscal years 2023-2024 and 2024-2025. By ensuring that a significant portion of the fee revenue (no less than 88%) is allocated to enhance Medicaid funding, the program aims to enhance care and maintain services within the long-term care sector. Consequently, this measure provides much-needed financial stability for nursing facilities to operate effectively.
SB1361 is a bill aimed at continuing and strengthening the Nursing Facility Sustainability Program in Hawaii. Established in 2012, the program has played an essential role in enhancing the long-term care system within the state by providing a mechanism for Medicaid to pay nursing facilities more effectively, especially during the financial strains caused by the COVID-19 pandemic. The bill proposes to maintain the provider fee that allows Hawaii to draw additional federal funds to support Medicaid payments, ensuring that vulnerable populations have continued access to necessary care.
While the bill generally has strong support due to its potential to maintain access to healthcare for Medicaid recipients, there may be concerns regarding the implementation of the provider fee. Some stakeholders might worry about the sustainability and distribution of the fees, particularly how they impact smaller nursing facilities or those with fewer resources. The bill establishes exemptions for certain facilities, aiming to alleviate possible financial burdens and ensure compliance with both state and federal regulations, which might be points of contention among varied stakeholders in the healthcare industry.