HI HCR46

Request Department of Human Services to study feasibility of increasing Medicaid reimbursement rates for Community Care Foster Family Homes (CCFFHs) and Expanded Adult Residential Care Homes (E-ARCHs).

Current Medicaid reimbursement is $47.06 per day (maximum $2,500 per month) for CCFFH providers compared to $280 per day (maximum $10,100 per month) for nursing homes for the same patient care.

Medicaid reimbursement rate for CCFFHs has not been increased in the last five years and is approximately one-sixth of nursing home placement rates, despite CCFFHs costing two-thirds or less than nursing home care.

Department of Human Services must review the existing payment model to determine if overall cost savings can be achieved through increased reimbursement rates and submit findings and recommendations to the Legislature no later than twenty days before the 2022 Regular Session convenes.

Low reimbursement rates result in CCFFH and E-ARCH caregivers declining Medicaid patients in favor of higher-paying private patients, reducing available beds for Medicaid recipients and increasing hospital stays.