HI HB583

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

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

Addresses the gap between long-term care facility operating costs and Medicaid reimbursement rates, which has widened due to lack of inflationary updates during the economic recession.

Notes that approximately 70 percent of patients in Hawaii's long-term care facilities are covered by the state Medicaid program, making reimbursement rates critical to facility operations.

Takes effect on July 1, 2050.