Relating To The Department Of Human Services.
Under SB889, the Department of Human Services is mandated to set per diem reimbursement rates of no less than $80 for adult day care services and $95 for adult day health care services. This differentiation not only aims to improve the financial viability of providers in this sector but also seeks to enhance the quality and accessibility of care for adults requiring supportive services. Additionally, the bill specifies that standard assessment criteria for Medicaid eligibility must be established for candidates seeking admission to these facilities, which should streamline the admission process.
SB889 aims to enhance Medicaid services by establishing a new category specifically for adult day care and adult day health care within the state of Hawaii. This legislative effort is designed to ensure that these services are recognized for Medicaid reimbursement, which is critical for providers that offer care to functionally impaired adults. The bill stipulates that adult day care and adult day health care cannot be categorized with care homes or foster care homes when it comes to Medicaid reimbursement, thereby distinguishing the types of care provided.
While the intention behind SB889 is to improve care options, there may be concerns regarding the implications for existing provider contracts under managed care organizations. The bill prohibits changes in provider contracts solely based on provider ownership changes, which raises questions about the flexibility of managed care organizations to adapt to evolving market conditions. As a result, discussions around this bill may reflect the broader tensions between ensuring stable care access and enabling competitive practices among providers.