2007-02-21                     House Journal                      Page 0285
HB 148                                                                                                                        
HOUSE BILL NO. 148 by the House Rules Committee by request of                                                                   
the Governor, entitled:                                                                                                         
                                                                                                                                
     "An Act relating to the senior care program; and providing for an                                                          
     effective date."                                                                                                           
                                                                                                                                
was read the first time and referred to the Health, Education & Social                                                          
Services and Finance Committees.                                                                                                
                                                                                                                                
                                                                                                                                
The following fiscal note(s) apply:                                                                                             
                                                                                                                                
1.  Fiscal, Dept. of Health & Social Services                                                                                   
                                                                                                                                

2007-02-21                     House Journal                      Page 0286
The Governor's transmittal letter dated February 20, 2007, follows:                                                             
                                                                                                                                
                                                                                                                                
"Dear Speaker Harris:                                                                                                           
                                                                                                                                
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am                                                      
transmitting a bill relating to the senior care program.                                                                        
                                                                                                                                
The bill would extend the sunset date of the existing senior care                                                               
program from June 30, 2007, to June 30, 2012, to allow continuation                                                             
of program benefits to needy seniors.                                                                                           
                                                                                                                                
                                                                                                                                
This bill also would make two changes to the eligibility requirements                                                           
for the program.  First, the income limitation would be altered.  The                                                           
current income standards are "frozen" by setting eligibility at a                                                               
specific monetary amount in state law that was equal to 135 percent of                                                          
the 2005 federal poverty income guidelines.  The 2005 limits have                                                               
caused some seniors to become ineligible for the program because of                                                             
cost-of-living adjustments that are made to retirement and pension                                                              
income, such as Social Security benefits, which are not automatically                                                           
adjusted under the current statutory language.  The change made by                                                              
the bill would result in income standards that are flexible enough to                                                           
correspond to changing federal poverty guidelines.  Second, the bill                                                            
would provide that an individual who is receiving a longevity bonus                                                             
payment would not be eligible for benefits under the senior care                                                                
program.  It is my intent to see the longevity bonus program reinstated                                                         
in the Fiscal Year 2008 budget for those qualifying seniors who were                                                            
prematurely cut from the program in the Fiscal Year 2004 budget.                                                                
However, seniors who qualify for the longevity bonus will have to                                                               
decide whether to obtain assistance from one or the other program.                                                              
                                                                                                                                
                                                                                                                                
The Department of Health and Social Services has found that there is                                                            
only low-level usage of the prescription drug option, despite extensive                                                         
outreach efforts encouraging seniors to enroll.  Additionally, survey                                                           
information indicates that many seniors have other health insurance                                                             
coverage available.  Because of these factors, the bill also would                                                              
eliminate the prescription drug benefit portion of the program.                                                                 
                                                                                                                                

2007-02-21                     House Journal                      Page 0287
The senior care program finances important benefits for needy older                                                             
Alaskans, to help them meet basic necessities, including food and                                                               
housing.  I urge your prompt and favorable action on this measure.                                                              
                                                                                                                                
                                Sincerely,                                                                                     
                                /s/                                                                                             
                               Sarah Palin                                                                                     
                                Governor"