Hawaii Senate Bill SR116

Hawaii 2025 Regular Session

• Introduced: 3/7/25
• Refer: 3/12/25

Caption

Urging The Governor To Determine A Course Of Action For The State, Should The Federal Government Cut Funding For Medicaid.

Impact

The anticipated budget cuts from the federal government could significantly reduce Medicaid funding to Hawaii by up to $9.4 billion, resulting in dire consequences such as increased uninsured rates among vulnerable populations, including children, seniors, and individuals experiencing homelessness. It is expected that over 156,000 individuals — representing about 34% of Hawaii's Medicaid population — could lose their coverage. The resolution emphasizes that these cuts would not only affect health coverage but would also reverse years of positive health outcomes achieved under Medicaid expansion.

Summary

Senate Resolution 116 (SR116) calls on the Governor of Hawaii to formulate a strategic response to potential federal cuts to Medicaid funding. Medicaid plays a vital role in providing healthcare to many low-income residents of Hawaii, covering approximately one in five residents and one in three children through the state's Med-QUEST program. The resolution highlights the financial dependence of Hawaii's Medicaid program on federal support, illustrating that 73% of the $3 billion in Medicaid spending in Hawaii in 2023 originated from federal funds. This underscores the importance of maintaining federal contributions to sustain healthcare for vulnerable populations.

Contention

The resolution also addresses the necessity for comprehensive planning by state officials to handle the fiscal challenges posed by reduced federal funding. Specifically, it urges the Governor to collaborate with Hawaii's congressional delegation to assess the impacts of proposed legislation and the timing of funding reductions. There is a pressing need for lawmakers to identify additional sources of funding or adjust state budgets to uphold the Medicaid program's viability if federal contributions were to dwindle. This situation raises critical discussions regarding health policy, budget priorities, and the balance of funding between state and federal resources.