Representatives in Hawaii and Alaska are pushing for legislation that would increase funding for skilled nursing facilities in both states.
The Equitable Payments for Nursing Facilities Act of 2023, originally introduced in 2021, would authorize a cost-of-living adjustment to the Medicare payment formula for skilled nursing facilities (SNFs) in Hawaiʻi and Alaska to account for the significantly higher cost to provide care in these areas.
Under current law, the Centers for Medicare & Medicaid Services (CMS) has the authority to provide adjustments to reimbursement amounts in consideration of the unique challenges facing hospitals located in Hawaiʻi and Alaska. However, this authority only applies to hospitals and inpatient psychiatric facilities, not SNFs.
“Skilled nursing facilities are a critical part of Hawaiʻi’s health care system and especially important in our rural communities,” Rep. Jill Tokuda, one of the bill’s sponsors, told Maui Now. “They provide hospitalized patients with continued care following an accident, severe illness, or surgery. In addition to helping them regain their ability to do daily activities and tasks, our skilled nursing facilities are a lifesaver for families and caregivers that want to be sure their loved ones have a safe place to recover and heal.”
Rep. Tokuda said that the bill represents an important step in making sure that skilled nursing facilities are adequately compensated, especially in high cost-of-living states.
“Alaska and Hawaiʻi have many wonderful things in common, but we also face some similar challenges,” Rep. Mary Peltola, another one of the bill’s sponsors, told Maui Now. “One challenge of our remote locations and dispersed populations is the high cost of living and delivering health care services. Skilled nursing facilities are an important part of our health care systems, providing a safe and stable environment for patients to recover following intensive medical treatment.”
Hilton Raethel, President and CEO of Healthcare Association of Hawai‘i, said that if passed, the legislation would make payments to Hawaiʻi nursing facilities more equitable.
“Skilled nursing facilities continue to provide care to an increasingly vulnerable and medically complex population, but struggle with rates that fail to take into account the costs of living and doing business in Hawaiʻi,” he said. “Hawaiʻi’s population is aging at a higher rate than that of the continental United States and the need for skilled nursing care is increasing.”
