HI HCR201

Requests the Insurance Commissioner to report on alternative payment models being adopted by Medicare and local health insurance plans, with findings due 20 days before the 2017 Regular Session of 2018.

Requires the report to analyze impacts of alternative payment models on: (1) quality and accessibility of healthcare for patients; (2) costs to operate healthcare provider businesses including independent providers, clinics, and hospitals; and (3) level of provider reimbursement and business viability.

Notes that HMSA plans to convert primary care provider reimbursement from fee-for-service to capitated payment model with fixed monthly rates per patient to improve population health and contain medical costs.

Identifies 255,215 individuals enrolled in Medicare coverage in Hawaii as of January 2017, with 51,532 EUTF retiree beneficiaries and dependents enrolled in Medicare health plans as of June 30, 2016.

References federal Medicare Access and CHIP Reauthorization Act of 2015, which phases out Medicare's payment formula and implements Merit-based Incentive Payment System and Advanced Alternative Payment Models to improve patient care and provider reimbursement.