Hawaii FQHC Intelligence

Governor Josh Green signed HB 1800 as Act 175 on June 26. The supplemental operating budget provides $10.42 billion in general funds for FY2026 and $10.63 billion for FY2027, with total spending across all financing of $19.77 billion and $20.31 billion, respectively.

The release says the budget maintains reserves and continues investments in affordable housing, families, public health and economic development amid reductions and uncertainty in federal funding. It does not identify a Medicaid, SNAP or FQHC-specific appropriation, so those amounts cannot be inferred from this source.

The HHS Inspector General denied federal recertification to Hawaiʻi's Medicaid Fraud Control Unit after reporting no criminal Medicaid-fraud or patient-abuse indictments or convictions from 2022 through 2025. The article says the unit had received about $3 million annually and that the Attorney General sought reconsideration, while Governor Green authorized a separate DHS Medicaid Fraud Strike Force.

The Governor's office also said CMS informed the state that Hawaiʻi Medicaid remained in good standing and that eligibility, benefits, provider payments and broader federal Medicaid funding were not affected. The source reports more than 360,000 enrollees and $2.2 billion in federal Medicaid funds in 2024, but no FQHC-specific effect.

The Hawaiʻi Department of Health says HHS selected the state as one of 10 new participants in the four-year Certified Community Behavioral Health Clinic Medicaid Demonstration, implemented jointly by the health department and Med-QUEST. Two state-operated Adult Mental Health Division clinics in Kahului and Lahaina, together serving more than 1,700 Maui residents, are anticipated to become fully certified by January 1, 2027.

CCBHC standards include 24/7 crisis response, outpatient mental-health and substance-use treatment, care coordination and recovery support regardless of ability to pay. The release does not identify an FQHC awardee or commit to expansion beyond the two named clinics.

HMSA told primary-care providers in May that its fixed monthly Primary Care Payment Model would shift to fee-for-service on July 1, 2026. The article reports provider concern about the roughly 60-day transition, more than 100 complaint letters received by the state health-planning administrator, possible litigation and a 15% payment differential for neighbor-island practices.

HMSA insures more than 750,000 people, but the source does not say all 750,000 members are being moved or that the change applies identically to every product or provider. It reports closure fears among independent practices but no confirmed closure or quantified FQHC spillover.

CMS guidance implementing section 71109 says that, beginning October 1, 2026, federal financial participation for full Medicaid and CHIP benefits generally remains available for U.S. citizens and nationals and three noncitizen categories: lawful permanent residents, Cuban/Haitian entrants and COFA migrants, when all other program criteria are met.

This source does not quantify Hawaiʻi's COFA population and does not create a blanket COFA exemption from the separate Medicaid community-engagement requirement. It establishes a federal-funding eligibility category, not guaranteed enrollment for every COFA migrant.

SB2087 SD2 would have created a three-year Health Coverage Continuity Pilot administered by the Department of Human Services with the Department of Commerce and Consumer Affairs to subsidize certain deductibles for eligible people, permit a contract with a nonprofit insurer or community organization, and repeal the program June 30, 2029.

The Senate passed the amended bill 25–0 on March 10, but the House referred it to HSH, CPC and FIN on March 12 and took no further action; the tracker marks it dead in committee. The proposed pilot therefore did not become an operating coverage backstop in the 2026 session.

Civil Beat's account of the University of Hawaiʻi physician-workforce assessment reports a statewide shortfall of 644 full-time physicians before geography and an 833-FTE gap after recognizing that island-specific emergency, intensive-care, psychiatry and other needs cannot be shared across counties. Hawaiʻi County was short 224 physicians, Maui 179, and Maui had the largest primary-care gap at 45.

More than 88 physicians moved away and at least 81 retired in 2025; the report says the state needs about 100 more physicians entering than leaving each year. The article does not report the prior 768-FTE figure, a statewide 152-FTE primary-care gap or the racial-distribution percentages previously attached to this claim.

The Governor's office announced a $188,892,440 CMS Rural Health Transformation Program award for federal FY2026, the first year of Hawaiʻi's five-year plan, with additional annual awards expected through 2030. The six initiatives cover a rural health information network, telehealth, emergency and mobile care, behavioral-health capacity, workforce education and retention, medical respite, and value-based-care readiness.

The release says the award ranks among the highest per rural resident, but does not publish that calculation, guarantee equal future awards or identify organization-level FQHC allocations.

Georgetown's analysis says that beginning October 1, 2026, federal funding for full Medicaid and CHIP benefits generally remains available to otherwise eligible lawful permanent residents, Cuban/Haitian entrants and COFA migrants, while many other qualified noncitizen categories—including refugees, asylees and trafficking survivors—lose that federal pathway unless another exception or state-funded option applies.

Lawfully residing children and pregnant people may remain covered under the CHIPRA 214 state option. The analysis does not provide a Hawaiʻi count, determine any individual's final eligibility or analyze community-engagement exemptions, so those issues are kept separate.

Hawaiʻi's approved State Plan Amendment 25-0003 reimburses 340B-purchased outpatient drugs at the submitted ingredient cost, capped at the 340B ceiling price, plus the professional dispensing fee. It also says 340B drugs dispensed through a contract pharmacy are not covered for Medicaid beneficiaries unless that pharmacy requests and receives written state approval.

The rule is effective January 1, 2025; the approval package does not identify which contract pharmacies have received state approval.