Legislature(2007 - 2008)SENATE FINANCE 532
04/03/2007 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB62 | |
| SB4 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 62 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| = | SB 4 | ||
SENATE BILL NO. 4
"An Act extending the cash assistance benefit program for
seniors under the senior care program and increasing the
benefit amount; and providing for an effective date."
This was the second hearing for this bill in the Senate Finance
Committee.
Co-Chair Stedman communicated that the intent today would be to
move this bill from Committee. A new fiscal note, dated April 3,
2007, relative to the Version 25-LS0056\C committee substitute
adopted during the bill's first hearing, had been distributed.
9:41:17 AM
Senator Olson, the bill's sponsor, informed the Committee he had
worked with both the House of Representatives and the Department
of Health and Social Services to perfect the language in this
bill. SB 4 would extend the Senior Care cash assistance program
to 2011. In addition, it would eliminate the under-utilized
prescription drug benefit component of the current program.
Senator Olson explained that the bill would provide monthly cash
assistance payments to eligible individuals as follows: $175 to
those whose household income did not exceed 100 percent of the
federal poverty guidelines for Alaska; $150 to those whose
household income did not exceed 135 percent but was above 100
percent of the federal poverty guidelines for Alaska; or $100 if
the household income did not exceed 150 percent of the federal
poverty guidelines for Alaska.
Senator Olson specified that the bill would not require
individuals meeting the household income test to provide
information on their asset holdings.
Senator Olson noted that provisions in the bill would prohibit
an individual from being eligible for both this program and the
Longevity Bonus Program were it re-authorized.
Senator Olson communicated that the new fiscal note estimated FY
2008 expenses to be $17.4 million. That amount was based on the
Department's estimation that 7,800 seniors would qualify for the
program.
9:43:11 AM
GINNY AUSTERMAN, Staff to Senator Olson, affirmed that the new
fiscal note had been distributed.
9:43:36 AM
Co-Chair Stedman observed that the fiscal note accompanying this
legislation would be the largest one advanced by the Committee
to date this session. While assistance to the State's seniors
and the needy is important, this legislation in essence "is
going counter" to the Legislature's effort to control the growth
of the operating budget this year.
JANET CLARKE, Assistant Commissioner, Finance and Management
Services, Department of Health and Social Services, explained
that the $17.4 million fiscal note "is a comprehensive fiscal
note for the cost of Senior Care program" in that it includes
administrative costs in addition to the benefits paid to
recipients. The annual costs associated with the existing Senior
Care Program, which has existed for approximately three years,
has been approximately 12 million dollars.
Ms. Clarke reviewed the Analysis information on page 3 of the
fiscal note. It depicted the monetary benefits estimated to be
paid at each of the three different income levels. These
payments which are estimated to amount to $16.6 million, would
account for the "bulk" of the program expenses. The balance
would address the cost of administering the program. Additional
staff would be required to administer this program since it is
more complex than the previous Senior Care program. The previous
Senior Care program allotted single cash payments of $120 per
month to program recipients as opposed to the three tiered
payment approach proposed in this bill.
9:47:28 AM
Co-Chair Stedman asked whether, instead of increasing staffing
levels, computer programs could be enhanced to address this
effort.
9:47:46 AM
Ms. Clarke explained that staffing was based on caseload levels.
The number of people who would be eligible for this assistance
is anticipated to increase.
Co-Chair Stedman asked the Department to testify to the accuracy
of its calculations.
9:48:29 AM
ELLIE FITZJARRALD, Director, Division of Public Assistance,
Department of Health and Social Services, stated that
approximately 7,000 seniors are currently enrolled in the Senior
Care program. "This bill would increase that number to 8,800".
Two additional staffers would be required to manage the
additional caseloads as each application must be reviewed to
determine eligibility and the information on each eligible
individual must be entered into the Department's computer
system. In addition, the Department's computer system must be
upgraded to ensure that payments are made in a timely matter.
Ms. Clarke pointed out that one time costs, such as the computer
upgrades, have been identified and could be eliminated from the
program expenses, once completed.
Co-Chair Stedman advised that it is much easier to control
expenses when things such as one-time expenses are identified
early on in the budget process. Otherwise the tendency is to
expand the program to absorb that funding.
Co-Chair Stedman also thought that the FY 2012 expenses depicted
in the fiscal note were an underestimation in light of the fact
that the number of program recipients might increase as the
State's population ages. To that point, he asked whether the
Department had studied the State's "aging trends" and the affect
of that beyond the timeframe specified in this bill.
Ms. Clarke affirmed that aging trends were analyzed. The
determination was that the State's senior population growth rate
would be "fairly flat" for the next eight to ten years and then
would experience a significant level of growth. That information
was utilized in developing the new fiscal note.
Ms. Clarke explained that the new fiscal note depicts a zero
expense for FY 2012 as the program is proposed to terminate in
2011.
9:51:18 AM
In response to a question from Senator Thomas, Ms. Fitzgarrald
expressed that the Department had conducted a survey of program
recipients to determine why the prescription drug component had
been under-utilized. The determination was that the program "was
not what they needed" as other prescription drug programs were
available to them through other insurance programs, pension
benefits, or the new Medicare Part "D" program.
Senator Thomas asked what consideration had been given to those
who had utilized the program.
Ms. Fitzgarrald specified that approximately 140 seniors were
currently utilizing the drug benefit. Senator Olson had
addressed this issue in this bill by revising the income test
levels and increasing the benefit levels.
9:53:24 AM
Senator Elton agreed with Co-Chair Stedman's remarks that once a
program is established, it is often difficult to curtail or
disband. To that point, he asked the Department to provide an
estimate of the program expenses were it continued to the year
2020, particularly as the senior population "bubble" was yet to
come. In addition, he asked whether the fiscal note was
developed in consideration of future changes in the federal
poverty level.
Ms. Fitzgarrald affirmed that the fiscal note did reflect the
fact that federal poverty guideline levels would increase each
year.
9:54:55 AM
Co-Chair Stedman asked for further clarification about the
staffing levels required to support the program.
Ms. Clarke specified that four staffers currently manage the
Senior Care program. Two additional staff would be required to
support the program proposed in this bill.
Co-Chair Stedman understood therefore that the program would be
supported by a total of six staffers.
Senator Olson moved to report Version "C" from Committee with
individual recommendations and new Department of Health and
Social Services fiscal note.
There being no objection, CSSB 4(FIN) was REPORTED from
Committee with the new $17,398,900 fiscal note, dated April 3,
2007 from the Department of Health and Social Services.
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