HB1668 • 2026

RELATING TO MEDICAID.

Healthcare

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: MARTEN, AMATO, BELATTI, GRANDINETTI, ILAGAN, IWAMOTO, KAPELA, KEOHOKAPU-LEE LOY, KILA, KITAGAWA, LOWEN, MATAYOSHI, MORIKAWA, OLDS, PERRUSO, POEPOE, SHIMIZU, SOUZA, TAKAYAMA, TAM, TARNAS, TEMPLO, Reyes Oda
Last action: 2026-03-20
Official status: The committee on HHS deferred the measure.
Effective date: Not listed

Plain English Breakdown

The official source does not provide specific details on the bill's impact or its timeline for implementation beyond needing CMS approval.

Medicaid Changes for People with Disabilities

This bill requires the Department of Human Services to not count earned income when deciding if people with disabilities between ages 16 and 64 are eligible for Medicaid.

What This Bill Does

Requires the Department of Human Services to ignore all earned income when checking eligibility for Medicaid for individuals with disabilities aged 16-64.

Who It Names or Affects

People with disabilities between the ages of 16 and 64 who are applying for or already receiving Medicaid.

Terms To Know

Earned Income Disregard: A rule that allows certain income to be ignored when deciding if someone qualifies for government assistance like Medicaid.
Medicaid: A program that helps people with low incomes pay for medical care and services.

Limits and Unknowns

The bill needs approval from the Centers for Medicare and Medicaid Services before it can be implemented.
It is not clear when this approval will be given or if there might be changes to the bill during review.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HD1

Hawaii published version HD1

Plain English: This amendment requires the Department of Human Services to allow individuals with disabilities, aged sixteen to sixty-four years, a full earned income disregard when determining their eligibility for Medicaid.

The Department of Human Services must now consider a full earned income disregard for people with disabilities between ages sixteen and sixty-four when they apply for or are eligible for Medicaid.

The amendment will only take effect after approval by the Centers for Medicare and Medicaid Services.
There is no clear reason why the effective date is set so far in the future (July 1, 3000), which might be a typographical error or an unusual legislative procedure.

Bill History

2026-03-20 S
The committee on HHS deferred the measure.
2026-03-17 S
The committee(s) on HHS has scheduled a public hearing on 03-20-26 1:00PM; Conference Room 225 & Videoconference.
2026-03-10 S
Referred to HHS, WAM.
2026-03-06 S
Passed First Reading.
2026-03-06 S
Received from House (Hse. Com. No. 36).
2026-03-05 H
Passed Third Reading with Representative(s) Garcia voting aye with reservations; none voting no (0) and Representative(s) Perruso excused (1). Transmitted to Senate.
2026-03-05 H
Reported from FIN (Stand. Com. Rep. No. 822-26), recommending passage on Third Reading.
2026-02-26 H
The committee on FIN recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 16 Ayes: Representative(s) Todd, Takenouchi, Hartsfield, Hussey, Keohokapu-Lee Loy, Kitagawa, Kusch, Lee, M., Miyake, Morikawa, Perruso, Templo, Yamashita, Alcos, Gedeon, Reyes Oda; Ayes with reservations: none; Noes: none; and Excused: none.
2026-02-24 H
Bill scheduled to be heard by FIN on Thursday, 02-26-26 2:00PM in House conference room 308 VIA VIDEOCONFERENCE.
2026-02-17 H
Passed Second Reading as amended in HD 1 and referred to the committee(s) on FIN with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Lee, M., Poepoe excused (3).
2026-02-17 H
Reported from HSH (Stand. Com. Rep. No. 309-26) as amended in HD 1, recommending passage on Second Reading and referral to FIN.
2026-02-05 H
The committee on HSH recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 9 Ayes: Representative(s) Marten, Olds, Amato, Hartsfield, Keohokapu-Lee Loy, Takayama, Takenouchi, Alcos; Ayes with reservations: Representative(s) Garcia; Noes: none; and Excused: none.
2026-02-02 H
Bill scheduled to be heard by HSH on Thursday, 02-05-26 9:30AM in House conference room 329 VIA VIDEOCONFERENCE.
2026-01-26 H
Referred to HSH, FIN, referral sheet 1
2026-01-21 H
Introduced and Pass First Reading.
2026-01-20 H
Prefiled.

Official Summary Text

RELATING TO MEDICAID.
Medicaid; Department of Human Services; Full Earned Income Disregard
Requires the Department of Human Services to allow a full earned income disregard for individuals with disabilities who are between the ages of sixteen and sixty-four years when determining eligibility for Medicaid. Takes effect upon approval by the Centers for Medicare and Medicaid Services. Effective 7/1/3000. (HD1)

Current Bill Text

Read the full stored bill text

HB1668

HOUSE OF REPRESENTATIVES

H.B. NO.

1668

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to medicaid
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

����
SECTION 1.
�
The legislature finds that despite the
enactment of "Kal's Law" through Act 155, Session Laws of Hawaii
2019, the goals of that law have not yet been met.
�
Individuals with a disability who are already
enrolled in medicaid and depend on medicaid home-based care are not able to
advance in employment if they wish to retain their medicaid benefits.
�
The legislature further finds that additional
clarification is needed to achieve the intent of Kal's Law.

����
SECTION
2.
�
The department of human services
shall allow a full earned income disregard for individuals with disabilities
who are between the ages of sixteen and sixty-four years when determining
eligibility for medicaid.

����
SECTION 3.

�
This Act shall take effect upon approval
by the Centers for Medicare and Medicaid Services of the earned income
disregard program established pursuant to section 2 of this Act.

INTRODUCED BY:

_____________________________

Report Title:

Medicaid;
Department of Human Services; Full Earned Income Disregard

Description:

Requires the
Department of Human Services to allow a full earned income disregard for
individuals with disabilities who are between the ages of sixteen and
sixty-four years
when determining eligibility for Medicaid
.
�

Takes effect upon approval by the Centers for Medicare and Medicaid
Services.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.