WASHINGTON, D.C. - Hawaii's Congressional delegation announced today that the Medicare, Medicaid, SCHIP Extension Act of 2007, passed by the Senate last night and the House today, includes a provision to provide a Medicaid disproportionate share hospital (DSH) allotment for Hawaii amounting to $7.5 million in additional federal funding for the first six months of 2008 for hospitals that care for significant numbers of Medicaid and uninsured patients. In addition, this important legislation will improve Medicare reimbursements, extend the State Children's Health Insurance Program, and extend other important Medicare and Medicaid policies.
U.S. Senator Daniel K. Akaka said: "Although this legislation is only a temporary solution, it will benefit Hawaii residents, physicians and hospitals. This bill will provide additional federal support to Hawaii hospitals struggling to meet the elevated demands placed on them by the increasing number of uninsured patients. DSH payments will help Hawaii hospitals meet the increasing health care needs of our communities."
U.S. Senator Daniel K. Inouye added: "This bill demonstrates our nation's commitment to the healthcare needs of the most vulnerable groups of our society - children, the elderly, and the poor. Access to basic healthcare and preventive medicine are important for all Americans, and it is in Hawaii's and our nation's best interest that such access continue to be provided. This measure is also important for Hawaii's medical professionals, especially those who serve in our island state's many remote, rural areas, because it provides the funding that allows them to continue to treat Medicare patients."
Congressman Neil Abercrombie: "The restoration of disproportionate share funding for Hawaii's hospitals will help them meet the growing cost of providing care for people and families who can't afford health insurance and have nowhere else to go," said Abercrombie. "Hospitals in 48 other states receive this federal assistance. It is simply a matter of fairness."
Congresswoman Mazie K. Hirono said, "The DSH funding for Hawai‘i is important to hospitals on the Neighbor Islands and in rural O‘ahu that serve many uninsured and indigent patients. This bill also prevents a scheduled 10% cut in Medicare payments to doctors and actually will slightly increase payments. Although this is only a short-term fix, Congress is recognizing the need to reimburse doctors at a level that reflects their costs and will enable them to continue caring for Medicare patients." Hirono added, "I am disappointed that President Bush has vetoed our efforts to provide health care coverage to 10 million American children through SCHIP. Instead Congress is now only able to temporarily extend coverage for children already enrolled but not to reduce the number of uninsured or provide health care to millions of eligible children."
Hawaii and Tennessee are the only two states that do not have permanent DSH allotments. The Balanced Budget Act of 1997 created specific DSH allotments for each state based on their actual DSH expenditures for FY 1995. In 1994, Hawaii implemented the QUEST demonstration program that was designed to reduce the number of uninsured and improve access to health care. The prior Medicaid DSH program was incorporated into QUEST. As a result of the demonstration program, Hawaii did not have DSH expenditures in 1995 and was not provided a DSH allotment.
In the Tax Relief and Health Care Act of 2006, DSH allotments were finally provided for Hawaii and Tennessee for 2007. The Act included a $10 million Medicaid DSH allotment for Hawaii for 2007. The Medicare, Medicaid, and SCHIP Extension Act of 2007 will extend the DSH allotments for Hawaii and Tennessee for an additional six months.
The purpose of providing a DSH allotment for Hawaii is to provide additional funding to the State of Hawaii to permit a greater contribution toward the uncompensated costs of hospitals that are providing indigent care. It is not meant to alter existing arrangements between the State of Hawaii and the Centers for Medicare and Medicaid Services (CMS) or to reduce in any way the level of federal funding for Hawaii's QUEST program.
For more information, see Senator Akaka's floor statement at this web address: http://akaka.senate.gov/public/index.cfm?FuseAction=Speeches.Home&month=12&year=2007&release_id=1957
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