Legislature(2007 - 2008)HOUSE FINANCE 519

04/03/2007 01:30 PM House FINANCE


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 92 JURISDICTION OF OMBUDSMAN TELECONFERENCED
Moved Out of Committee
+ HB 166 CONTRIBUTIONS FROM PERM. FUND DIVIDENDS TELECONFERENCED
Moved CSHB 166(FIN) Out of Committee
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= HB 198 SENIOR PAYMENT PROGRAM TELECONFERENCED
Moved CSHB 198(FIN) Out of Committee
+= HB 61 TAX CREDIT FOR CONTRIBUTIONS TO VOC ED TELECONFERENCED
Moved CSHB 61(FIN) Out of Committee
HOUSE BILL NO. 198                                                                                                            
                                                                                                                                
     "An  Act  establishing  the   Alaska  senior  assistance                                                                   
     payment   program;  repealing   the   senior  care   and                                                                   
     longevity bonus  payment programs; and providing  for an                                                                   
     effective date."                                                                                                           
                                                                                                                                
Representative Crawford MOVED to ADOPT Amendment #3:                                                                            
                                                                                                                                
     Page 1, line 2:                                                                                                            
          Delete "and longevity bonus programs"                                                                                 
          Insert "program"                                                                                                      
                                                                                                                                
     Page 1, line 14:                                                                                                           
          Delete "former"                                                                                                       
                                                                                                                                
     Page 2, lines 12 - 19:                                                                                                     
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 2, lines 23 - 25:                                                                                                     
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 6, lines 14 - 17:                                                                                                     
          Delete all material.                                                                                                  
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 9, lines 2 - 4:                                                                                                       
          Delete all material and insert:                                                                                       
        "* Sec. 12. AS 47.45.320 is repealed."                                                                              
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 9, line 12:                                                                                                           
          Delete "sec. 12"                                                                                                      
          Insert "sec. 9"                                                                                                       
                                                                                                                                
     Page 9, line 19:                                                                                                           
          Delete "sec. 7"                                                                                                       
          Insert "sec. 4"                                                                                                       
                                                                                                                                
     Page 9, line 25, through page 10, line 4:                                                                                  
          Delete all material and insert:                                                                                       
        "* Sec. 17. The uncodified law of the State of                                                                      
     Alaska is amended by adding a new section to read:                                                                         
          RETROACTIVITY AND REVIVAL. If secs. 1 - 12 of this                                                                    
     Act take effect after June 30, 2007,                                                                                       
               (1)  AS 47.45.300 - 47.45.390, as amended by                                                                     
     this Act, the repeal of AS 47.45.320, and secs. 11, 12,                                                                    
     and 14 of this Act, are retroactive to June 30, 2007;                                                                      
     and                                                                                                                        
               (2)  AS 47.45.300, 47.45.310, 47.45.330,                                                                         
     47.45.340, 47.45.350, 47.45.360, and 47.45.390, as                                                                         
     amended by this Act, are revived.                                                                                          
        * Sec. 18. Sections 15, 16(b), and 17 of this Act                                                                     
     take effect immediately under AS 01.10.070(c).                                                                             
        * Sec. 19. Except as provided in sec. 18 of this                                                                      
     Act, this Act takes effect June 30, 2007."                                                                                 
                                                                                                                                
Representative Hawker OBJECTED.                                                                                                 
                                                                                                                                
Representative  Crawford  explained  that  he would  like  to                                                                   
remove the mention of the longevity  bonus from the bill.  He                                                                   
wanted to vote  to pass HB 198 without killing  the longevity                                                                   
bonus.                                                                                                                          
                                                                                                                                
Representative  Hawker  spoke  against  the  amendment.    He                                                                   
related  that the  purpose  of  the bill  is  to replace  the                                                                   
longevity  bonus  and  senior  care  payment  programs.    He                                                                   
addressed  the lowering  of the  poverty level  rate and  his                                                                   
work with state agencies to develop  policy direction for the                                                                   
state  in the  future.    He spoke  in  favor of  the  higher                                                                   
poverty allowance because the  battle of pitting the rich vs.                                                                   
the poor  is removed due to  this legislation.   He described                                                                   
HB 198 as a  very good policy decision, which  melds the best                                                                   
features of all ideas.                                                                                                          
                                                                                                                                
Representative  Crawford disagreed  that the senior  benefits                                                                   
payment  program  replaces  the longevity  bonus  program,  a                                                                   
promise made to those eligible for the program.                                                                                 
                                                                                                                                
1:46:05 PM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  asked if there  are legal concerns  regarding                                                                   
reinstating  the  longevity  bonus.    Representative  Hawker                                                                   
recalled  testimony   in  the  Health  and   Social  Services                                                                   
Subcommittee that the attorney  general's office had made the                                                                   
determination that  a statutory  change would be  required to                                                                   
re-establish the longevity bonus  program.  He asked that the                                                                   
neediest populations be served.                                                                                                 
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Crawford, Gara                                                                                                        
OPPOSED:  Joule,  Kelly,  Nelson,   Thomas,  Foster,  Hawker,                                                                   
Chenault, Meyer                                                                                                                 
                                                                                                                                
Vice-Chair Stoltz was absent from the vote.                                                                                     
                                                                                                                                
The MOTION FAILED (2-8).                                                                                                        
                                                                                                                                
1:48:55 PM                                                                                                                    
                                                                                                                                
Representative Kelly MOVED to ADOPT Amendment #4:                                                                               
                                                                                                                                
     Page 5, line 8,                                                                                                            
          Delete "175"                                                                                                          
          Insert "150"                                                                                                          
                                                                                                                                
     Page 6, line 1,                                                                                                            
          Delete "175"                                                                                                          
          Insert "150"                                                                                                          
                                                                                                                                
     Page 7, line 2,                                                                                                            
          Delete "175"                                                                                                          
          Insert "150"                                                                                                          
                                                                                                                                
     Page 7, line 15,                                                                                                           
          Delete "175"                                                                                                          
          Insert "150"                                                                                                          
                                                                                                                                
Representative Hawker OBJECTED.                                                                                                 
                                                                                                                                
Representative  Kelly  explained   how  the  amendment  would                                                                   
impact  Denali  Kid  Care and  the  senior  benefits  payment                                                                   
program  by changing  the  proposed  poverty  level from  175                                                                   
percent to  150 percent.   His concern  is that the  state is                                                                   
entering a  period of  deficit spending.   He stated  support                                                                   
for the senior benefits program,  but not at the level of 175                                                                   
percent of  poverty level.   He maintained that  this program                                                                   
at this  level is  not sustainable.   He emphasized  that the                                                                   
Department   of  Health   and  Social   Services  budget   is                                                                   
approaching   $2   billion.      He   called   for   personal                                                                   
responsibility.  He requested a "yes" vote on Amendment #4.                                                                     
                                                                                                                                
1:52:53 PM                                                                                                                    
                                                                                                                                
Representative Hawker  reminded the committee that  Alaska is                                                                   
the wealthiest state in the nation  and the legislature lacks                                                                   
the vision and will to do "what's  right by our communities."                                                                   
This   bill  addresses   the   "bookends"   of  the   state's                                                                   
population,  the   most  needy  children  and   elders.    He                                                                   
maintained  that front-end  loading  the  health care  system                                                                   
saves future  costs.  He  related how inflation  has impacted                                                                   
social services for children.                                                                                                   
                                                                                                                                
Representative  Hawker   addressed  the  benefits   regarding                                                                   
seniors.  The most empowering  way to give seniors assistance                                                                   
is  through a  cash assistance  payment.   This  bill is  not                                                                   
beyond  Alaska's  means.    He  opined  that  the  two  areas                                                                   
addressed in HB 198 are the priorities needed at this time.                                                                     
                                                                                                                                
1:57:50 PM                                                                                                                    
                                                                                                                                
Representative  Joule  testified against  Amendment  #4.   He                                                                   
brought up  the fact that  there is a  sunset clause  and the                                                                   
matter can  be re-addressed in  five years.  He  recalled the                                                                   
number of seniors who need these extra funds.                                                                                   
                                                                                                                                
Representative  Thomas also spoke  against Amendment #4.   He                                                                   
opined that the bill is needed  to help children and seniors.                                                                   
                                                                                                                                
2:00:01 PM                                                                                                                    
                                                                                                                                
A roll call vote was taken on the motion.                                                                                       
                                                                                                                                
IN FAVOR: Kelly, Foster, Meyer, Chenault                                                                                        
OPPOSED: Nelson, Thomas, Crawford, Gara, Hawker, Joule                                                                          
                                                                                                                                
Vice-Chair Stoltz was absent from the vote.                                                                                     
                                                                                                                                
The MOTION FAILED (4-6).                                                                                                        
                                                                                                                                
2:01:07 PM                                                                                                                    
                                                                                                                                
Representative Gara MOVED to ADOPT Amendment #5:                                                                                
                                                                                                                                
     Page 1, line 3, following "age":                                                                                         
          Insert  ", for  pregnant  women,  and for  disabled                                                                 
     persons; relating to the poverty guideline and cost                                                                      
     sharing for certain recipients of medical assistance"                                                                    
                                                                                                                                
     Page 4, lines 29 - 31:                                                                                                     
          Delete  "official  poverty  line  applicable  to  a                                                                   
     family of that size according to the federal Office of                                                                     
     Management and Budget"                                                                                                     
          Insert  "federal poverty  guideline for Alaska  set                                                               
     by  the United  States Department  of  Health and  Human                                                               
     Services [OFFICIAL POVERTY  LINE] applicable to a family                                                               
     of  that  size  [ACCORDING  TO  THE  FEDERAL  OFFICE  OF                                                                   
     MANAGEMENT AND BUDGET]"                                                                                                    
                                                                                                                                
     Page 5, line 31, through page 6, line 11:                                                                                  
          Delete all material and insert:                                                                                       
                    "(14)  pregnant women who are not                                                                           
          covered  under  (a)   of  this  section  and  whose                                                                   
          household  income does  not exceed  175 percent  of                                                               
          the  federal poverty  guideline for  Alaska set  by                                                               
          the  United States Department  of Health  and Human                                                               
          Services                                                                                                          
                         [(A)     $2,208   A  MONTH   IF  THE                                                                   
               HOUSEHOLD CONSISTS OF TWO PERSONS;                                                                               
                         (B)      $2,782  A   MONTH  IF   THE                                                                   
               HOUSEHOLD CONSISTS OF THREE PERSONS;                                                                             
                         (C)      $3,355  A   MONTH  IF   THE                                                                   
               HOUSEHOLD CONSISTS OF FOUR PERSONS;                                                                              
                         (D)      $3,928  A   MONTH  IF   THE                                                                   
               HOUSEHOLD CONSISTS OF FIVE PERSONS;                                                                              
                         (E)      $4,501  A   MONTH  IF   THE                                                                   
               HOUSEHOLD CONSISTS OF SIX PERSONS;                                                                               
                         (F)      $5,074  A   MONTH  IF   THE                                                                   
               HOUSEHOLD CONSISTS OF SEVEN PERSONS;                                                                             
                         (G)      $5,647  A   MONTH  IF   THE                                                                   
               HOUSEHOLD CONSISTS OF EIGHT PERSONS;                                                                             
                         (H)     $5,647  A  MONTH,   PLUS  AN                                                                   
               ADDITIONAL $574 A MONTH FOR EACH EXTRA PERSON                                                                    
               ABOVE EIGHT PERSONS WHO IS IN THE HOUSEHOLD                                                                      
               IF THE HOUSEHOLD CONSISTS OF NINE PERSONS OR                                                                     
               MORE];"                                                                                                          
                                                                                                                                
     Page 6, following line 13:                                                                                                 
          Insert new bill sections to read:                                                                                     
        "* Sec. 6. AS 47.07 is amended by adding a new                                                                      
     section to read:                                                                                                           
               Sec. 47.07.022. Extended medical assistance                                                                    
          coverage  for children; costs.  (a) In  addition to                                                                 
          the  persons specified  in  AS 47.07.020, a  person                                                                   
          who  resides  in  the   state  and  who  meets  the                                                                   
          criteria under (b) of  this section is eligible for                                                                   
          extended medical assistance  coverage equivalent to                                                                   
          the  mandatory  and   optional  services  described                                                                   
          under AS 47.07.030 if  the person submits an annual                                                                   
          application  and contribution  as specified  in (c)                                                                   
          of this section.                                                                                                      
               (b)  The department shall administer a                                                                           
          program  of  extended medical  assistance  coverage                                                                   
          for  a person  who is  under  19 years  of age  and                                                                   
          whose  household  income  is  between 200  and  350                                                                   
          percent  of  the  federal   poverty  guideline  for                                                                   
          Alaska  set  by  the United  States  Department  of                                                                   
          Health and Human Services.                                                                                            
               (c)  The program administered under this                                                                         
          section  must  include  an annual  application  and                                                                   
          sliding  scale  contribution, payable  under  terms                                                                   
          specified    in   regulations   adopted    by   the                                                                   
          department. The regulations must                                                                                      
                    (1)  include the option of an assignment                                                                    
          of an  applicant's permanent fund dividend  and the                                                                   
          permanent   fund  dividend   of  a  parent,   legal                                                                   
          guardian, or other authorized  representative of an                                                                   
          applicant; and                                                                                                        
                    (2)  set the contribution amount for an                                                                     
          applicant in an amount  that, except as provided in                                                                   
          (d) and (e) of this  section, is not more than one-                                                                   
          half percent  of the federal poverty  guideline for                                                                   
          Alaska for the annual  household income of a family                                                                   
          of  two if  the applicant's  income is between  200                                                                   
          percent  and  225 percent  of  the federal  poverty                                                                   
          guideline  for Alaska, and increases  progressively                                                                   
          to  not  more  than  three percent  for  an  annual                                                                   
          household  income  for  a  family of  two  that  is                                                                   
          between 300 percent  and 350 percent of the federal                                                                   
          poverty guideline for Alaska.                                                                                         
               (d)  In addition to the annual contribution                                                                      
          established   under  (c)   of  this  section,   the                                                                   
          department  may  impose a  co-payment  of not  more                                                                   
          than   20   percent   of   medical   services   and                                                                   
          prescription  drug costs covered under  the program                                                                   
          for a person whose household  income is between 250                                                                   
          and  350 percent of  the federal poverty  guideline                                                                   
          for Alaska.                                                                                                           
               (e)  Except as provided in (f) of this                                                                           
          section,  the department  may set the  contribution                                                                   
          amount for an applicant  in an amount less than the                                                                   
          amount specified in  (c) and (d) of this section if                                                                   
          a  lesser  amount  is required  to  obtain  federal                                                                   
          approval   for  the   maximum   level  of   federal                                                                   
          financial  participation  in  the  state's  program                                                                   
          under  42 U.S.C.  1396 - 1396v  (Title XIX,  Social                                                                   
          Security Act)  or 42 U.S.C. 1397aa  - 1397jj (Title                                                                   
          XXI,   Social    Security   Act),    whichever   is                                                                   
          applicable.                                                                                                           
               (f)  The department may not provide for a                                                                        
          contribution amount  less than the amounts provided                                                                   
          in  (c) and (d)  of this  section for an  applicant                                                                   
          whose  household  income   is  not  less  than  250                                                                   
          percent  of  the  federal   poverty  guideline  for                                                                   
          Alaska  and  who  qualifies for  coverage  under  a                                                                   
          separate  health  insurance  policy if  the  policy                                                                   
          provides   coverage  that  is  equivalent   to  the                                                                   
          coverage  available  under  AS 47.07.030  for  that                                                                   
          applicant.                                                                                                            
               (g)  The department may limit or exclude a                                                                       
          person's   eligibility  for  coverage   under  this                                                                   
          section   by  regulation   for  an  applicant   who                                                                   
          qualifies for coverage,  with or without payment of                                                                   
          an  insurance  premium,  under  a  separate  health                                                                   
          insurance policy if the policy                                                                                        
                    (1)      provides    coverage   that   is                                                                   
          equivalent   to   the  coverage   available   under                                                                   
          AS 47.07.030 for the applicant;                                                                                       
                    (2)  is provided at a cost that does not                                                                    
          create an  undue hardship for the applicant  or the                                                                   
          applicant's  family; the department  shall describe                                                                   
          in  regulation the standards  for finding  an undue                                                                   
          hardship; and                                                                                                         
                    (3)  would exclude an applicant from                                                                        
          coverage under  42 U.S.C. 1396 - 1396v  (Title XIX,                                                                   
          Social Security  Act) or 42 U.S.C.  1397aa - 1397jj                                                                   
          (Title  XXI,  Social  Security  Act)  or  otherwise                                                                   
          jeopardize  federal  approval  of  the  state  plan                                                                   
          submitted under this section.                                                                                         
               (h)  The department may adopt regulations                                                                        
          necessary to implement this section.                                                                                  
        * Sec. 7. AS 47.07.042(d) is amended to read:                                                                         
               (d)  In addition to the requirements                                                                             
          established under (a)  and (b) of this section, the                                                                   
          department  shall [MAY]  require premiums  or cost-                                                               
          sharing  contributions   from  recipients  who  are                                                                   
          eligible  for  benefits   under  AS 47.07.022.  The                                                               
          [AS 47.07.020(b)(13)  AND WHOSE HOUSEHOLD INCOME IS                                                                   
          GREATER THAN  THE APPLICABLE AMOUNT SET  OUT IN (f)                                                                   
          OF THIS SECTION. IF THE DEPARTMENT REQUIRES                                                                           
          PREMIUMS OR COST-SHARING CONTRIBUTIONS UNDER THIS                                                                     
          SUBSECTION, THE] department                                                                                           
                    (1)  shall adopt in regulation a sliding                                                                    
          scale for those premiums or contributions based on                                                                    
          household income;                                                                                                     
                    (2)  may not exceed the maximums allowed                                                                    
          under federal law; and                                                                                                
                    (3)  shall implement a system by which                                                                      
          the department or its designee collects those                                                                         
          premiums or contributions."                                                                                           
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 9, following line 6:                                                                                                  
          Insert a new bill section to read:                                                                                    
        "* Sec. 19. AS 47.07.042(f) is repealed."                                                                           
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 9, following line 7:                                                                                                  
          Insert a new bill section to read:                                                                                    
        "* Sec. 21. The uncodified law of the State of                                                                      
     Alaska is amended by adding a new section to read:                                                                         
          NOTIFICATION OF FEDERAL APPROVAL. The commissioner                                                                    
     of health and social services shall notify the revisor                                                                     
     of statutes when federal approval under sec. 23 of this                                                                    
     Act is obtained."                                                                                                          
                                                                                                                                
     Renumber the following bill sections accordingly.                                                                          
                                                                                                                                
     Page 9, line 12:                                                                                                           
          Delete "sec. 12"                                                                                                      
          Insert "sec. 14"                                                                                                      
                                                                                                                                
     Page 9, line 19:                                                                                                           
          Delete "sec. 7"                                                                                                       
          Insert "sec. 9"                                                                                                       
                                                                                                                                
     Page 9, line 22, following "proceed":                                                                                      
          Insert "to seek federal approval and"                                                                                 
                                                                                                                                
     Page 9, line 27:                                                                                                           
          Delete "secs. 1 - 17"                                                                                                 
          Insert "secs. 1 - 5, 8 - 18, and 20"                                                                                  
                                                                                                                                
     Page 9, line 30:                                                                                                           
          Delete "secs. 14, 15, and 17"                                                                                         
          Insert "secs. 16, 17, and 20"                                                                                         
                                                                                                                                
     Page 10, line 2:                                                                                                           
          Delete "Sections 18, 19(b), and 20"                                                                                   
          Insert "Sections 21, 22, 23(b), and 24"                                                                               
                                                                                                                                
     Page 10, following line 3:                                                                                                 
          Insert a new bill section to read:                                                                                    
        "* Sec.  26. Sections 6, 7,  and 19 of this  Act take                                                               
     effect six months from the  effective date of sec. 23 of                                                                   
     this   Act  or  upon   the  approval   of  the   changes                                                                   
     necessitated by secs. 6 and  7 of this Act by the United                                                                   
     States   Department  of   Health  and  Human   Services,                                                                   
     whichever is later."                                                                                                       
                                                                                                                                
     Renumber the following bill section accordingly.                                                                           
                                                                                                                                
     Page 10, line 4:                                                                                                           
          Delete "sec. 21"                                                                                                      
          Insert "secs. 25 and 26"                                                                                              
                                                                                                                                
Representative Hawker OBJECTED.                                                                                                 
                                                                                                                                
Representative  Gara  explained   that  the  amendment  is  a                                                                   
scaled-back  version  of  a  proposal   of  universal  health                                                                   
coverage for  kids by Senator  Wielechowski and himself.   It                                                                   
would  take advantage  of a  70  percent federal  match.   He                                                                   
spoke about Denali  Kid Care and the ability to  buy into the                                                                   
program  once the  175 percent  level has been  reached.   He                                                                   
referred to page 3 of an attachment  to Amendment #5 (copy on                                                                   
file), a spreadsheet  addressing modifications of  the Denali                                                                   
Kid  Care  program.   He  explained  that this  would  extend                                                                   
coverage  to families  that cannot  afford health  insurance,                                                                   
and cost  about $500 to  $1,300 per person.   He  pointed out                                                                   
that HB  198 would  cost the  state about  $1.5 million  more                                                                   
than  what is  currently being  paid.   This amendment  would                                                                   
cost the state around $1.5 million more than that.                                                                              
                                                                                                                                
2:04:16 PM                                                                                                                    
                                                                                                                                
Representative  Gara spoke  about  the savings  to the  state                                                                   
from  covering the  uninsured.   Six other  states are  doing                                                                   
some version  of this  plan.   It would  affect about  18,000                                                                   
people in Alaska.                                                                                                               
                                                                                                                                
Representative   Hawker  pointed   out  that  the   amendment                                                                   
introduces  a  significant  new policy  initiative  into  the                                                                   
statutory  framework.   He emphasized  that universal  health                                                                   
care  coverage does  not belong  in  this bill,  which is  an                                                                   
attempt to "fix  what we have", not to expand  programs.  The                                                                   
amendment  goes beyond  his comfort  level.   He agreed  that                                                                   
this issue needs to be addressed, but not in this bill.                                                                         
                                                                                                                                
2:07:14 PM                                                                                                                    
                                                                                                                                
Co-Chair  Chenault  asked  for clarification  on  an  earlier                                                                   
comment  made by Representative  Gara  regarding if a  higher                                                                   
level  of  income  results  in   higher  health  care  needs.                                                                   
Representative   Gara   explained  that   children's   health                                                                   
insurance costs  the state about  $1,200 to $1,400  per child                                                                   
with the  federal government picking  up about 70  percent of                                                                   
that.   If higher income  families are  allowed to buy  in, a                                                                   
higher  proportion with  kids with  significant health  needs                                                                   
are going  to buy in, according  to the Department  of Health                                                                   
and Social  Services.  Co-Chair  Chenault assumed  that there                                                                   
are two  scenarios; families  with private health  insurance,                                                                   
or those who have no health insurance at all.                                                                                   
                                                                                                                                
Representative Hawker pointed  out that this discussion shows                                                                   
how complex the topic of universal health care is.                                                                              
                                                                                                                                
Representative Gara WITHDREW Amendment #5.                                                                                      
                                                                                                                                
2:10:35 PM                                                                                                                    
                                                                                                                                
JANET  CLARKE, ASSISTANT  COMMISSIONER,  DIVISION OF  FINANCE                                                                   
AND  MANAGEMENT SERVICES,  DEPARTMENT  OF  HEALTH AND  SOCIAL                                                                   
SERVICES, addressed the four fiscal  notes by the department.                                                                   
The  fiscal note  with the  component  labeled "Senior  Care"                                                                   
incorporates yesterday's Amendment  #1.  She related that the                                                                   
total  cost is $20,163,100  with  the bulk  of the costs  for                                                                   
benefits.  The  attachments describe the estimated  case load                                                                   
for  FY  08,  the dollar  amount  for  each  federal  poverty                                                                   
guideline  amount, and  the estimated  benefit cost  for each                                                                   
level.                                                                                                                          
                                                                                                                                
Co-Chair Chenault asked if the  proposal is to roll over four                                                                   
positions  from   the  Senior  Care  program   and  hire  two                                                                   
additional  case load  managers.   Ms.  Clarke  said that  is                                                                   
correct.  The  two additional staff are due  to the increased                                                                   
case  load  and  the complexity  of  verification  of  income                                                                   
eligibility.                                                                                                                    
                                                                                                                                
Representative Hawker  explained how the fiscal  note relates                                                                   
to the human services  budget on the House Floor  today.  All                                                                   
costs  were  removed  from Senior  Care  expenses;  none  are                                                                   
duplicated.                                                                                                                     
                                                                                                                                
2:14:18 PM                                                                                                                    
                                                                                                                                
Representative Kelly  referenced the old Senior  Care program                                                                   
and  wondered  if there  was  a  Medicaid  match in  the  new                                                                   
program.  Ms.  Clarke explained that the old  Senior Care was                                                                   
a  combination  of   cash  and  a  Medicaid   match  for  the                                                                   
prescription  drug  program,  which  was quite  small.    The                                                                   
general  fund  for  that program  was  about  $10.6  million.                                                                   
Representative  Kelly   summarized  that  the   old  and  new                                                                   
programs were very similar.                                                                                                     
                                                                                                                                
Ms. Clarke pointed out that the  remaining three fiscal notes                                                                   
relate to  the Denali  Kid Care program.   She addressed  the                                                                   
Behavioral Health Medicaid Services  component fiscal note, a                                                                   
request for  $455,900.  It  is an estimate  of the  number of                                                                   
children  who  might  need the  services.      Representative                                                                   
Hawker  asked how  much  is general  funds  and  how much  is                                                                   
federal matching funds.  Ms. Clarke  replied that the federal                                                                   
receipts  are  estimated at  $311,100  and the  general  fund                                                                   
match is $144,800.                                                                                                              
                                                                                                                                
2:17:13 PM                                                                                                                    
                                                                                                                                
Ms.  Clarke addressed  the Health  Care  Services -  Medicaid                                                                   
Services fiscal  note and clarified that $617,800  is general                                                                   
funds  and $1,577,600  is federal  funds.   She related  that                                                                   
these are all direct benefit programs.                                                                                          
                                                                                                                                
Ms.  Clarke spoke  to the  Public  Assistance Field  Services                                                                   
fiscal note,  the component where eligibility  is determined.                                                                   
The request is  for one eligibility worker to be  added.  The                                                                   
FY 08  costs are less  because it is  estimated that  it will                                                                   
take time to hire that individual.                                                                                              
                                                                                                                                
Co-Chair  Chenault asked  for  what percent  of children  the                                                                   
state picks  up costs.  Ms.  Clarke thought between  40 to 50                                                                   
percent.                                                                                                                        
                                                                                                                                
Representative  Kelly  asked  if  the  federal  match  of  70                                                                   
percent on  the Denali  Kid Care  has increased or  decreased                                                                   
over the  last five years.   Ms. Clarke  replied that  it has                                                                   
decreased  slightly.     In  response  to  a   question  from                                                                   
Representative Kelly,  Ms. Clarke said the fiscal  note takes                                                                   
the decrease into account.                                                                                                      
                                                                                                                                
2:20:45 PM                                                                                                                    
                                                                                                                                
Representative  Gara asked if  the general  fund cost  of Kid                                                                   
Care  at 175  percent is  about  $750,000.   Ms. Clarke  said                                                                   
$784,000.  Representative  Gara asked how many  kids would be                                                                   
at 175 percent  and how many would  be at 200 percent.    Ms.                                                                   
Clarke  reported  that  there   would  be  just  under  1,300                                                                   
children at 175 percent, and double that at 200 percent.                                                                        
                                                                                                                                
Co-Chair Meyer  expressed gratitude to Representative  Hawker                                                                   
for his work on the bill.                                                                                                       
                                                                                                                                
2:22:39 PM                                                                                                                    
                                                                                                                                
Representative  Foster thanked  Representative Hawker,  also.                                                                   
He pointed  out the twelve  additional sponsors of  the bill,                                                                   
including himself.                                                                                                              
                                                                                                                                
Representative  Crawford  expressed strong  feelings  against                                                                   
the legislation.   He maintained that the longevity  bonus is                                                                   
a separate  issue.  He  indicated that  he is in  a difficult                                                                   
position when asked to vote for the bill.                                                                                       
                                                                                                                                
2:24:30 PM                                                                                                                    
                                                                                                                                
Representative Thomas reported  that he did not feel the same                                                                   
way,  even as  a former  co-sponsor for  the longevity  bonus                                                                   
bill,  because  the Pioneers  of  Alaska and  AARP  expressed                                                                   
support for this  legislation.  He said he  feels comfortable                                                                   
voting in support of the bill.                                                                                                  
                                                                                                                                
Representative Foster  MOVED to REPORT CSHB 198  (FIN) out of                                                                   
Committee   with    individual   recommendations    and   the                                                                   
accompanying fiscal notes.  There  being NO OBJECTION, it was                                                                   
so ordered.                                                                                                                     
                                                                                                                                
CSHB  198 (FIN)  was REPORTED  out  of Committee  with a  "do                                                                   
pass"  recommendation and  with zero  fiscal note  #1 by  the                                                                   
Department of  Administration and with four  new fiscal notes                                                                   
by the Department of Health and Social Services.                                                                                
                                                                                                                                
2:26:13 PM                                                                                                                    
                                                                                                                                

Document Name Date/Time Subjects