HI SB912

Requires the Department of Human Services to apply an annual cost increase to long-term care facilities' Medicaid reimbursement rates for care provided to Medicaid recipients using a provider-specific prospective payment system.

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

Addresses financial challenges in long-term care facilities caused by Medicaid reimbursement rates that do not cover actual costs of care and have not been updated for inflationary adjustments in several years.

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 the reimbursement gap.

Takes effect July 1, 2050.