The PATCH Act modifies how Medicare pays physicians who provide services in Hawaii. Currently, Medicare uses a "work geographic index" to adjust doctor payment rates based on regional factors, and Hawaii's index has been calculated as lower than the national average, resulting in lower reimbursement rates for Hawaii physicians. This bill establishes a floor, or minimum threshold, of 1.5 for Hawaii's work geographic index starting January 1, 2025, ensuring that physician payments in the state will not fall below that level. The change is not required to be budget neutral, meaning it will increase overall Medicare spending rather than offsetting costs elsewhere in the program. The bill aims to improve access to care in Hawaii by preventing physician payment rates from dropping below a certain level, which could discourage doctors from serving patients in the state.
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