Legislature(2007 - 2008)CAPITOL 106
03/22/2007 03:00 PM House HEALTH, EDUCATION & SOCIAL SERVICES
| Audio | Topic |
|---|---|
| Start | |
| HB72 | |
| HB181 | |
| HB198 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 72 | TELECONFERENCED | |
| *+ | HB 198 | TELECONFERENCED | |
| *+ | HB 181 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 198-SENIOR ASSISTANCE PAYMENT PROGRAM 4:18:21 PM CHAIR WILSON announced that the final order of business would be 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 MIKE HAWKER, Alaska State Legislature, introduced HB 198, as the prime sponsor. He noted his membership on the House Finance Committee and chairmanship of the budget subcommittee for HESS and said that, in those capacities, he has been made aware of the importance of unrestricted cash state assistance to seniors. Representative Hawker recalled that, in 2003, the legislature did not fund the longevity bonus, the act that originally provided assistance to seniors who qualified only by the length of their residency in the state. He explained the history of the Senior Care program, a needs-based program, that provided a cash assistance payment to low income seniors. However, the Senior Care program did not accomplish its objective to provide assistance with the cost of prescription drugs. Representative Hawker pointed out that the real needs of low income seniors in Alaska are addressed by HB 198. The bill offers a restoration of a cash benefit program for qualified seniors, and will be effective as the previous program sunsets on June 30, 2007. He continued to explain that HB 198 creates a tiered payment system and that monthly payments are: $250 per month to individuals with income less than 75 percent of federal poverty level guidelines for Alaska (FPL-A); $175 per month to individuals with income from 75 percent to less than 100 percent of FPL-A; $125 per month to individuals with income from 100 percent to less than 135 percent of FPL-A. He stressed that the program is needs-based; however, the it will not be supported by Medicaid matching funds because the program provides a cash assistance benefit. 4:25:34 PM REPRESENTATIVE HAWKER concluded by saying that HB 198 creates a single program for the benefit of low income seniors and delivers help to all seniors who meet the eligibility requirements. In addition, this bill does not include a regulatory asset test limit and, therefore, is a fair and balanced approach to providing benefits to seniors. He noted that HB 198 includes a sunset clause for June 30, 2011, and the Senior Assistance Payment Program can be revisited at that time. 4:26:47 PM REPRESENTATIVE GARDNER acknowledged that the cancellation of the longevity bonus program was unfair. She asked whether the assistance payment is included when calculating the senior's poverty level. REPRESENTATIVE HAWKER replied that the income from the program is not included in the eligibility testing for the program. He added that HB 198 is a needs-based program, and does not require a hold harmless provision in the statute. 4:28:53 PM REPRESENTATIVE GARDNER observed that the assistance program should elevate the elderly and low income seniors above the poverty level. REPRESENTATIVE HAWKER opined that the state can not guarantee every resident a certain lifestyle. 4:29:47 PM REPRESENTATIVE SEATON expressed his appreciation of the fact that a previously qualified senior will not need to re-apply for this program. He then asked for the definition of state residency. REPRESENTATIVE HAWKER acknowledged that state residency is not stipulated in this bill, but that residency has an ubiquitous definition within the entire public assistance arena. REPRESENTATIVE SEATON clarified that the intention of HB 198 is to not require residency, although residency is required to receive an Alaska Permanent Fund dividend. REPRESENTATIVE HAWKER confirmed that there is no intent to include restrictive residency requirements in this bill. 4:31:57 PM REPRESENTATIVE SEATON recalled that when the senior care program was first passed, the sunset date was intended to coordinate with a federal senior program. REPRESENTATIVE HAWKER agreed that, in the original concept of the senior care program, there was an intent to coordinate with a senior federal prescription drug benefit program, but neither prescription drug program has been successful. CHAIR WILSON added that only 140 people applied. 4:33:50 PM FRANK APPEL, Chair, Alaska Commission on Aging, stated his commission's support for HB 198. He said that low income seniors struggle to pay for food and heating fuel. Cash assistance, based on income, will enable seniors to continue to live independently. The Alaska Commission on Aging reviewed the bill and suggested that the legislature consider increasing the eligibility to 135 percent of the poverty level. Nevertheless, he said that the commission requests the committee's support of HB 198. 4:35:42 PM RALPH C. HUNT, Member, Pioneers of Alaska, stated his support for HB 198, and said that, although he would not be in need without this bill, many people would benefit from its passage. 4:36:43 PM PAT LEVY, Advocacy Director, American Association of Retired Persons (AARP), Alaska, informed the committee that the AARP's policy, set by the board of directors, supports government assistance to those most in need. He suggested that HB 198 is better public policy than the restoration of the longevity bonus. The bill also addresses the needs of older Alaskans between the ages of 65 and 75, who do not quality for the longevity bonus. Mr. Levy expressed AARP's concern that cash payments may not be enough to keep seniors out of nursing homes. Therefore, support for services such as, Meals on Wheels, adult day care, and the Keep the Elders at Home Initiative must continue. He suggested increasing the eligibility to 150 percent or 175 percent of the poverty level, if possible. In response to Representative Gardner's question, he opined that HB 198 will bring the seniors with the lowest income above the poverty level. Mr. Levy concluded by saying that HB 198 is a very good public policy program. 4:39:53 PM MARIE DARLIN, Coordinator, Capital City Task Force, American Association of Retired Persons (AARP), Alaska, spoke of the older residents who will benefit from the passage of HB 198. She said that lower income older people in Alaska fall into three categories: people who worked for low wages, often at two jobs, but never accumulated much and they come to age 65 with minimum social security; people in remote Alaska, especially those with subsistence lifestyles, who never saw much cash when they were young and do not have much cash as elders; older people, especially older women, who saved their whole life but, usually because of health care costs, often for a terminally ill spouse, used their savings to pay for health care, and find themselves at a lower income after retirement. Ms. Darlin opined that HB 198 is designed to help those who need it the most and is good public policy that will help many older Alaskans deal with circumstances beyond their control. 4:42:08 PM JAMES CARROLL, Member, Juneau Retired Teachers Association, expressed his organization's support for HB 198. However, he requested that the longevity bonus program be kept on the books and not forgotten. 4:42:57 PM Karleen Jackson, Commissioner, Department of Health & Social Services, advised the committee that HB 198 is an enhancement to HB 148 in that it is a needs-based program. Commissioner Jackson said that her department supports HB 198 with the caveat that the longevity bonus should also be considered, relaying Governor Palin's message that "a promise made should be a promise kept." 4:43:57 PM CHAIR WILSON closed public testimony. 4:44:05 PM REPRESENTATIVE FAIRCLOUGH expressed her understanding that the fastest growing population in the state is residents over the age of 65. She asked whether the financial analysis of the future cost of the bill takes into consideration the growth in the number of seniors who will qualify for the program, or if research shows that aging residents are in a better state of financial security than their predecessors. REPRESENTATIVE HAWKER affirmed that demographics, stratified by age, indicate a growing senior population. One recent study of economic trends projected a marked increase, beginning in 2015 and continuing to 2025, of residents who will qualify for Medicaid. By the year 2025, Medicaid enrollment may increase to 25,000 seniors. The potential growth of this program is of serious concern and it is incumbent upon the legislature to reassess the needs of communities and the allocation of resources in four years. Representative Hawker expressed his belief that the state must make an increasing commitment to seniors to address this demographic change. REPRESENTATIVE FAIRCLOUGH referred to the 135 percent poverty level cap and inquired as to the financial impact of raising the eligibility level to, for example, 150 percent. She asked whether Representative Hawker would support an amendment that raises the eligibility level. REPRESENTATIVE HAWKER noted that 135 percent of poverty level is the eligibility cap for the current Senior Care Program. He reiterated that HB 198 increases the eligibility of many seniors by the removal of the assets test. However, moving the eligibility cap up, in addition, makes predicting the financial costs of the bill speculative. For example, moving to the [150 percent] level increases the cost of the program to $18 million, and a cap of 175 percent would increase the cost to $20 million. He agreed that it would be good to explore the tolerance of the legislature for increasing the fiscal note, but he cautioned against increasing the cap by a committee amendment at this time without further research. 4:51:06 PM REPRESENTATIVE FAIRCLOUGH stated her support for the bill and acknowledged the probability of further examination of the eligibility level by the finance committee. 4:51:29 PM CHAIR WILSON pointed out that the needs of seniors are great and she also encouraged the sponsor to look at raising the eligibility cap. 4:51:59 PM REPRESENTATIVE SEATON expressed his support of the fact that HB 189 does not tie eligibility to a fixed number and, therefore, eligibility will increase as the poverty guideline increases. 4:52:30 PM REPRESENTATIVE HAWKER affirmed that the previous program did not allow annual adjustments of the poverty level. HB 189 will specifically allow the guidelines to move with the annual adjustments issued by the federal government. CHAIR WILSON provided an example of why that is important. 4:53:31 PM REPRESENTATIVE SEATON moved to report HB 198 out of committee with individual recommendations and the accompanying fiscal notes. There being no objections, HB 198 was reported from the House Health, Education and Social Services Standing Committee.
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