Maui has a severe shortage of healthcare providers, wIth a 40% shortage of physicians according to AHEC. The last private medical OBGYN practice on Maui has just announced they will no longer deliver babies later this year. Hawaii has the worst shortage of primary care providers in America by far, with 35% of Hawai’i citizens in a health professional shortage areas. That includes over half a million Hawai’i residents according to this new survey:
Hawaii is the only U.S. state to tax healthcare providers for caring for Medicare, Medicaid and TriCare patients. It is forbidden to pass this GET tax on gross income on to Medicare and TriCare patients. Medical practices in Hawai’i have very high costs of providing medical services, and often break even providing care to Medicare and Medicaid patients. The GET tax on healthcare is a death tax for many private medical practices, and can amount to $20,000-$30,000 for solo providers and hundreds of thousands for group practices.
The entire Hawai’i State Senate and every House and Senate committee which heard SB1035 to excerpt healthcare from the GET this session voted unanimously for the measure, however the House Finance Committee declined to hold a hearing on the bill. If the Maui Committee decides to charge another 0.5% surcharge for th GET, that would be in effect another nail in the coffin of private medical practices. It is highly probable that in 3-5 years, there will be few private medical practitioners left on Maui, trending the revenues from taxing healthcare on Maui toward zero. Maui already has significantly higher mortality for many medical conditions compared to Oahu according to Hawai’i DOH statistics.
If the Maui Council does decide to add a 0.5% surcharge, then the Hawai’i Provider Shortage Crisis Task Force respectfully requests that you excerpt healthcare from the GET surcharge. All healthcare provided by hospitals and nonprofit and federal clinics is already excerpt from Hawaii’s GET taxation.
Without a GET exemption for healthcare it is very likely that Maui will see little tax revenue from taxing healthcare providers in several years and worsening severe shortages of healthcare professionals, which will in tern effect the entire island’s economy.
My name is Eric Rohozinski owner of Maui Physical Therapy. As you may know form my testimony on 6/9/23, I had informed you Hawaii is the only state in the US that require medical practitioner to pay out of pocket the GET on all Medicare and Medicaid patients. As you where informed the Hawaii Medicare and Medicaid fee schedule is fixed an is the lowest fee schedule in the US. Over the last three years our fee schedule was cut a further 9%. Federal law prevents us to have the patient pay the GET. So basically as a medical practitioner in Hawaii we are subjected 4% GET that they can not get form the patient an 4% out of pocket bringing the GET of 8% on medical practitioners . Personally over 30 years here on Maui I have paid around $334,000 in GET. If I had been working on the mainland this money at 3% compound interest comes to about $475,500. As shown here working on the mainland makes it possible to buy a home, pay student loans, and pay for your children education much more easier. A further 0.5% to GET will make now 9% tax for us. Working medical practitioners in Hawaii find it very difficult to survive. There has been little if any support from the State. It amazes me that what we are considered as an essential service. History has shown little concern resulting in now a medical crisis. The longer you work in Hawaii you are loosing. How are we able to recruit new doctors and medical practitioners to Hawaii.
Aloha, I am writing you in regards to the increase in the GE taxes ! Why would you propose something like this in a time of the highest inflation rate in over 40 yrs, ? The people of this country and state are suffering big time at the grocery store, the gas pump , rent,,and basically everything they buy. Look at the facts, credit card balances are higher than at any time in history, people are saving less than at any time in history. A recession is predicated by the majority of economists. And you want to increase taxes ? NOW !!!!! Please don't be just one of those out of touch politicians . Please look at what the common people are going through. If your not on a salary or you work for the feds-state - county, this tax really hurts. It will get passed on to everyone eventually. Thank you for your time. Jeff merle
I oppose the .5% increase in the GE Tax for the following reasons: the cost of living in Hawaii is high enough on top of the high inflation this country is experiencing. Food prices have soared this past year as have the cost of rents. Have you considered what it will be like for tenants on Maui who already pay extremely high rents to have another .5% added to their GE Tax? Or for people on a fixed income to have to pay even more for food and drugs? Please think this through before you vote. There isn't even a plan in place yet for how you will put these additional funds towards infrastructure improvements and how you will account for them. Thank you for your consideration. Debra Merle merle@maui.net
Maui has a severe shortage of healthcare providers, wIth a 40% shortage of physicians according to AHEC. The last private medical OBGYN practice on Maui has just announced they will no longer deliver babies later this year. Hawaii has the worst shortage of primary care providers in America by far, with 35% of Hawai’i citizens in a health professional shortage areas. That includes over half a million Hawai’i residents according to this new survey:
https://www.sanabenefits.com/blog/hawaii-wyoming-lead-the-country-in-share-of-population-impacted-by-primary-care-doctor-shortages/
Hawaii is the only U.S. state to tax healthcare providers for caring for Medicare, Medicaid and TriCare patients. It is forbidden to pass this GET tax on gross income on to Medicare and TriCare patients. Medical practices in Hawai’i have very high costs of providing medical services, and often break even providing care to Medicare and Medicaid patients. The GET tax on healthcare is a death tax for many private medical practices, and can amount to $20,000-$30,000 for solo providers and hundreds of thousands for group practices.
The entire Hawai’i State Senate and every House and Senate committee which heard SB1035 to excerpt healthcare from the GET this session voted unanimously for the measure, however the House Finance Committee declined to hold a hearing on the bill. If the Maui Committee decides to charge another 0.5% surcharge for th GET, that would be in effect another nail in the coffin of private medical practices. It is highly probable that in 3-5 years, there will be few private medical practitioners left on Maui, trending the revenues from taxing healthcare on Maui toward zero. Maui already has significantly higher mortality for many medical conditions compared to Oahu according to Hawai’i DOH statistics.
If the Maui Council does decide to add a 0.5% surcharge, then the Hawai’i Provider Shortage Crisis Task Force respectfully requests that you excerpt healthcare from the GET surcharge. All healthcare provided by hospitals and nonprofit and federal clinics is already excerpt from Hawaii’s GET taxation.
Without a GET exemption for healthcare it is very likely that Maui will see little tax revenue from taxing healthcare providers in several years and worsening severe shortages of healthcare professionals, which will in tern effect the entire island’s economy.
Scott Grosskreutz
My name is Eric Rohozinski owner of Maui Physical Therapy. As you may know form my testimony on 6/9/23, I had informed you Hawaii is the only state in the US that require medical practitioner to pay out of pocket the GET on all Medicare and Medicaid patients. As you where informed the Hawaii Medicare and Medicaid fee schedule is fixed an is the lowest fee schedule in the US. Over the last three years our fee schedule was cut a further 9%. Federal law prevents us to have the patient pay the GET. So basically as a medical practitioner in Hawaii we are subjected 4% GET that they can not get form the patient an 4% out of pocket bringing the GET of 8% on medical practitioners . Personally over 30 years here on Maui I have paid around $334,000 in GET. If I had been working on the mainland this money at 3% compound interest comes to about $475,500. As shown here working on the mainland makes it possible to buy a home, pay student loans, and pay for your children education much more easier. A further 0.5% to GET will make now 9% tax for us. Working medical practitioners in Hawaii find it very difficult to survive. There has been little if any support from the State. It amazes me that what we are considered as an essential service. History has shown little concern resulting in now a medical crisis. The longer you work in Hawaii you are loosing. How are we able to recruit new doctors and medical practitioners to Hawaii.
Eric Rohozinski
Aloha, I am writing you in regards to the increase in the GE taxes ! Why would you propose something like this in a time of the highest inflation rate in over 40 yrs, ? The people of this country and state are suffering big time at the grocery store, the gas pump , rent,,and basically everything they buy. Look at the facts, credit card balances are higher than at any time in history, people are saving less than at any time in history. A recession is predicated by the majority of economists. And you want to increase taxes ? NOW !!!!! Please don't be just one of those out of touch politicians . Please look at what the common people are going through. If your not on a salary or you work for the feds-state - county, this tax really hurts. It will get passed on to everyone eventually. Thank you for your time. Jeff merle
I oppose the .5% increase in the GE Tax for the following reasons: the cost of living in Hawaii is high enough on top of the high inflation this country is experiencing. Food prices have soared this past year as have the cost of rents. Have you considered what it will be like for tenants on Maui who already pay extremely high rents to have another .5% added to their GE Tax? Or for people on a fixed income to have to pay even more for food and drugs? Please think this through before you vote. There isn't even a plan in place yet for how you will put these additional funds towards infrastructure improvements and how you will account for them. Thank you for your consideration. Debra Merle merle@maui.net