THE SENATE
S.B. NO.
1647
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO HUMAN SERVICES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that current baseline reimbursements in commercial health insurance, medicaid, and medicare plans are low and offer no cost of living increases or overhead reimbursements for physicians. In addition, these plans offer no increase in reimbursement rates to reflect years of experience, as is common in other fields. The legislature recognizes that without adequate reimbursement rates, physicians may struggle to maintain a financially viable practice or may refuse to provide care to patients utilizing those plans altogether.
The legislature further finds that many physicians are opting out of private practice. Ten per cent of physicians in Hawaii currently are in private practice. This compares with seventy-five per cent of Hawaii physicians who were in private practice ten years ago.
The purpose of this Act is to ensure that primary care physicians who provide services to med-QUEST recipients may continue to serve these recipients without experiencing a loss of revenue.
SECTION 2. There is appropriated out of the general revenues of the State of Hawaii the sum of $20,000,000 or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for direct payment to primary care physicians for services provided to med-QUEST recipients.
The sums appropriated shall be expended by the department of human services for the purposes of this Act.
SECTION 3. This Act shall take effect on July 1, 2025.
INTRODUCED BY:
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Report Title:
DHS; Med-QUEST; Primary Care Physicians; Direct Payment; Appropriation
Description:
Appropriates moneys to the Department of Human Services for direct payment to primary care physicians for services provided to Med-QUEST recipients.
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