HI HB583

Requires the Department of Human Services to apply annual cost increases to long-term care facilities' Medicaid reimbursement rates using an inflation factor applied to the provider's historical costs or basic prospective payment system rates.

Establishes that the annual inflation factor shall be the rate approved by the federal government in the Medicaid state plan.

Addresses financial challenges facing long-term care facilities caused by Medicaid reimbursement rates that do not cover actual care costs and lack of inflationary updates during economic recession.

Notes that approximately 70 percent of patients in Hawaii long-term care facilities are covered by the state Medicaid program, magnifying the financial impact of reimbursement gaps.

Takes effect on July 1, 2050.