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The Honolulu Advertiser
Updated at 4:36 p.m., Tuesday, June 24, 2008

Lingle should release Medicaid payments

Does it serve the public interest to help provide quality healthcare to those in Hawai'i who can't afford it?

Of course it does.

Certainly this was the motivation behind Act 284, which appropriates $16 million in state money — $8 million for fiscal year 2008 (which ends on Monday) and $8 million for FY 2009 (which begins Tuesday) — to reimburse physicians who provide care under the state's Medicaid and QUEST programs.

It's an expensive investment, to be sure. But to support broad access to medical services, it's a proper one.

For the Lingle administration, letting go of that first $8 million is a painful prospect: With revenue forecasts worsening, it's tempting — or prudent, the administration says — to let the June 30 deadline pass without releasing the $8 million for FY 2008.

The administration argues that using separate budget appropriations to make retroactive payments is fiscally unwise, especially in such a difficult budget climate.

But the state did derive a long-term benefit — needed healthcare for its Medicaid and QUEST patients — and in fairness should pay for it.

The doctors who provided the care often incur costs higher than current reimbursement rates. The $16 million, along with about $20 million in matching federal funds over two years, would help correct that imbalance, and encourage doctors stay in business in Hawai'i. Certainly this is worth investing in: We need all the doctors we can get, especially in rural and other underserved areas.

Even Lingle, who allowed Act 284 to become law without her signature, praised its objective as "laudable." And she will release the second $8 million effective July 1, which will provide real-time payments to doctors for Medicaid services for FY 2009.

Her objection to Act 284's funding method — using separate appropriations rather than as part of the Department of Human Services budget — is worth a full debate.

But that's for another time; the release of these funds has been anticipated since the bill became law in July 2007, and should not be withheld now.

The Lingle administration has made steady progress in improving reimbursements for its Medicaid and QUEST programs. It should continue to do so, and release the money.