May 1, 2025 UPDATED
News Alert!
As of May 2025, Hawaii is actively pursuing several legislative initiatives to enhance mental health services, with a focus on youth care, culturally responsive practices, and improved infrastructure.
Key Legislative Developments in Hawaii Mental Health Services
1. Senate Bill 1442 (SB1442): Modernizing Youth Mental Health Services
SB1442 aims to revamp Hawaii’s child and adolescent mental health system—the first comprehensive update in 50 years. The bill mandates the Department of Health’s Child and Adolescent Mental Health Division (CAMHD) to establish family guidance centers across counties, offering a spectrum of services including prevention, early identification, screening, diagnosis, treatment, and rehabilitation. Importantly, the provision of these services is contingent upon the availability of federal or state funding, addressing concerns about potential litigation due to unfunded mandates. The legislation also requires CAMHD to submit a statewide mental health services plan every five years, starting in 2027, with public hearings in each county to ensure community involvement .(Honolulu Star-Advertiser)
2. Senate Bill 623 (SB623): Addressing Native Hawaiian Mental Health Disparities
Recognizing the unique mental health challenges faced by Native Hawaiians, SB623 proposes the inclusion of members with expertise in Native Hawaiian concepts of well-being, culturally grounded mental health methodologies, or traditional healing practices in the State Council on Mental Health. The bill also mandates annual training for council members on topics related to Native Hawaiian healing and health, aiming to foster culturally responsive policies and programs .(LegiScan)
3. Senate Bill 787 (SB787) and House Bill 112 (HB112): Establishing a Statewide Mental Health Warm Line
Both SB787 and HB112 focus on creating a free, statewide mental health warm line operated by the Department of Health. This initiative is designed to provide immediate mental health support to residents, serving as a preventive measure to address mental health issues before they escalate .(FastDemocracy, FastDemocracy)
4. House Bill 854 (HB854): Enhancing Mental Health Record-Keeping in Correctional Facilities
HB854 addresses critical challenges in mental health record-keeping within Hawaii’s correctional facilities. The bill allocates $500,000 annually for the 2025–2027 fiscal biennium to the Department of Corrections and Rehabilitation for procuring a new electronic health record system. This move follows reports of significant issues with the existing system, which hindered access to essential medical records .(BillTrack50)
5. Senate Bill 1042 (SB1042): Pilot Program for Emerging Mental Health Therapies
SB1042 proposes a two-year pilot program under the Department of Human Services to explore emerging and breakthrough mental health therapies. The bill includes the establishment of a special fund and appropriates necessary funds for the program’s implementation .(trackbill.com)
These legislative efforts reflect Hawaii’s commitment to improving mental health services through modernization, cultural sensitivity, and enhanced infrastructure. By addressing systemic issues and prioritizing community involvement, the state aims to provide more effective and accessible mental health care for its residents.(BillTrack50)
As of May 2025, Hawaii’s Community Integration Services (CIS) program continues to play a pivotal role in addressing the intersection of housing and healthcare for Medicaid beneficiaries. Administered by the Hawaii Department of Human Services’ Med-QUEST Division, CIS provides pre-tenancy and tenancy support services aimed at assisting Medicaid members in securing and maintaining stable housing, thereby improving health outcomes and reducing homelessness .(OHHS)
Funding and Program Developments
In January 2025, the Centers for Medicare & Medicaid Services (CMS) approved a five-year extension of Hawaii’s QUEST Integration Section 1115 Demonstration, effective through December 31, 2029. This extension encompasses continued support for housing-related services under the CIS program, aligning with CMS’s framework for addressing health-related social needs (HRSN) . The approved services include:(GovDelivery)
- Pre-tenancy services
- Tenancy and sustaining services
- One-time transition and moving costs (excluding rent)
- Utility assistance
- Medically necessary home remediations
- Home/environmental accessibility modifications(Medicaid)
These services are designed to support Medicaid enrollees at risk of homelessness or those experiencing homelessness, with the goal of promoting recovery, wellness, and self-advocacy within the community .(Medicaid)
Medicaid Billing and Reimbursement Considerations
While the CIS program’s integration into the QUEST Integration Demonstration provides a structured framework for funding, healthcare providers in Hawaii have expressed concerns regarding delays in supplemental Medicaid payments. As of May 2025, Hawaii’s private hospitals are awaiting approximately $240 million in funds, which were anticipated earlier in the year. These delays are attributed to increased scrutiny and a surge in applications for state-directed payments at the federal level, leading to financial strain on healthcare facilities .(WSJ)
Legislative Initiatives
In response to the need for enhanced support of home- and community-based services (HCBS), Hawaii’s legislature introduced Senate Bill 715 in 2025. This bill proposes appropriating funds to the Department of Human Services to achieve full funding status for Medicaid HCBS, including estimated payment increases. The legislation emphasizes maximizing federal matching funds and exploring all available funding sources before utilizing state general revenues .(LegiScan)
These developments underscore Hawaii’s commitment to integrating housing support within its Medicaid program, recognizing the critical role stable housing plays in overall health and well-being.(OHHS)
As of May 2025, Hawaii has implemented significant updates regarding the medical billing and reimbursement for long-acting injectable antipsychotics (LAIAs) under its Medicaid program.(OUP Academic)
💉 Enhanced Reimbursement for LAIA Administration
Effective November 1, 2023, the Hawaii Medicaid program increased the administration fee for LAIAs to $200 when administered in community settings. This adjustment aims to incentivize providers to offer these services outside traditional clinical environments, thereby improving access for patients with serious mental illnesses. Eligible providers include physicians, pharmacies, and other qualified healthcare professionals. (MedQuest Hawaii)
🏥 Alignment with Medicare Fee Schedule
In 2025, Hawaii’s Medicaid program updated its professional fee schedule to align with 100% of the Medicare rates. This alignment ensures consistency in reimbursement and supports providers in delivering cost-effective care. (MedQuest Hawaii)
🧾 Billing Codes and Documentation
Providers administering LAIAs should utilize the appropriate Healthcare Common Procedure Coding System (HCPCS) codes and ensure accurate documentation to facilitate reimbursement. Staying informed about any changes to billing codes is crucial for compliance and optimal reimbursement. (Medicare)
For the most current information on billing codes, reimbursement rates, and provider requirements, healthcare professionals are encouraged to consult the Hawaii Medicaid Provider Memos and the Med-QUEST Division.