Rate Increase Included in 2025-2026 Budget in Hawaii

Last week, the Hawaii legislature finalized their 2025-2026 state budget, and it has been sent to Governor Josh Green for his signature. After preliminary review of the budget, HCAOA believes there is funding in the budget to cover the Milliman rate study recommendations at the “low” scenario. Earlier this session, HCAOA submitted testimony in support of HB 702, a bill that would have funded the rate study at the high scenario, but it stalled in the Senate.

​HCAOA is awaiting confirmation from the MedQuest Division (MQD) to get more details about the budget and information about implementation of this increase, including the new reimbursement rates and effective date.
 
This increase comes as amidst continued uncertainty about the potential for Medicaid cuts at the federal level. If significant cuts occur, it is likely that the Hawaii legislature would return for a special session to make budget adjustments.
 
We will continue to keep you up-to-date as the federal budget process unfolds and as we receive confirmation from MQD about the implementation of this rate increase. If you have any questions, please contact [email protected].