HOUSE BILL NO. 16 "An Act extending senior benefits." 9:57:42 AM REPRESENTATIVE MIKE HAWKER stated that HB 16 extends the Alaska senior benefits payment program for an additional four years. The program was established in 2007 and will sunset June 30, 2011 without affirmative action during this legislative session. He stated that 10,093 elder Alaskans currently benefit from the program. The oldest recipient of the benefits is 105 years old. The established program provides monthly cash assistance to Alaska residents age 65 or older whose household income is less than 175 percent of the federal poverty guideline for Alaska. He explained the various tiers of the program. He stressed that HB 16 does not alter the current benefits; it merely extends the program four years. The program costs $20 million per year and the legislation is a maintenance commitment. If the money appropriated by the legislature were deemed insufficient to meet the needs of the program, the Department of Health and Social Services (DHSS) is authorized in statute to reduce or eliminate the benefit available to the recipient in order to meet the most pressing needs of the state. 10:03:41 AM Representative Hawker referred to a convincing handwritten constituent letter (copy on file). He believed that the bill should pass out of committee. 10:05:02 AM Senator Thomas referred to the sectional analysis stating that the department may reduce or eliminate the cash benefit available to recipients based on the appropriations. He asked if the benefits would be reduced on a prorated basis. Representative Hawker responded that regulations regarding potential manifestations of the mentioned section have not yet been established. Historically, ratable reductions are implemented as early as possible in a fiscal year, eliminating the need to prorate. Co-Chair Stedman requested a department's perspective, and remarked that he did not anticipate any shortfall. He expressed interest only in a hypothetical answer. WILLIAM J. STREUR, COMMISSIONER, DEPARTMENT OF HEALTH AND SOCIAL SERVICES, replied that he would provide the information at a later time. 10:08:38 AM AT EASE 10:09:50 AM RECONVENED Senator Thomas asked about the "see delayed repeal note." Representative Hawker referenced the Alaska statutes. He noted the footnote known as the "delayed repeal," which is the four year sunset addressed in committee. Co-Chair Stedman asked if the administration supports the legislation. Mr. Streur replied that the administration supports the extension. Co-Chair Stedman asked why there are six positions needed to extend the program. Commissioner Streur responded that the six positions are a continuation of the current staffing allocated to the program. Representative Hawker reminded that the program is an eligibility based program, which includes 10 thousand beneficiaries. The eligibility is dynamic and the number of employees is reflective of the amount of work necessary to manage the eligibility status of the beneficiaries. Co-Chair Stedman asked how seniors are notified that the program exists. Commissioner Streur responded that the program is advertised on the state website and in local division of public assistance offices. He believed that both rural and urban accesses are similar. 10:14:05 AM Co-Chair Stedman asked about qualifying issues for seniors in the Pioneer Home. Mr. Streur responded that seniors in the Pioneer Home are not eligible due to the establishment of the Pioneer Home fee. Since the majority of the residents in the Pioneer Home are Medicaid eligible, it is essential to maximize Medicaid. If a resident receives a subsidy, the money is then used to offset the Medicaid payment. Co-Chair Stedman asked if seniors in the Pioneer Home who pay their own bills are included. He asked about those residents fortunate enough to have the liquidity to pay the substantial bills each month. He wondered if the Medicaid issue was impacted for those individuals. Mr. Streur offered to provide future information. Co-Chair Stedman asked about those residents of the Pioneer Home who are without the additional funds needed for small luxuries. 10:16:30 AM Senator Olson asked if benefits were granted to those people living out of state. Mr. Streur believed that the checks were for residents only. Senator Olson asked about provisions regarding transport out of state for medical reasons. Representative Hawker stated that beneficiaries must be Alaskan residents. He explained that eight unidentified recipients were identified last year for leaving the state and the cases are currently in review. Representative Hawker added that the program statutorily provides for recovery provisions for any benefits that were paid inappropriately as stated in AS 47.45.308. Senator Thomas asked about electronic advertising methods in regard to seniors and low income seniors in rural areas. He expressed concern regarding the distribution of information. 10:19:30 AM Co-Chair Stedman discussed the fiscal note from DHSS and the addition of $1,968,000 in general funds. The administration is aware of the true cost of the program. He believed it appropriate for the governor to bring foreword a budget amendment to fund the item. He mentioned the two page spreadsheet exhibiting case summaries and the expenditure forecast. RON KREHER, ACTING DIRECTOR, PUBLIC ASSISTANCE, DEPARTMENT OF HEALTH AND SOCIAL SERVICES (via teleconference) offered to respond to questions. 10:21:32 AM DENISE DANIELLO, EXECUTIVE DIRECTOR, ALASKA COMMISSION ON AGING, expressed support for the legislation. She noted that the bill provides funding for basic necessities for the seniors in Alaska. She noted that the commission supports this legislation and the extension for the benefits payment program. She stated that greater than 10,000 senior citizens receive benefits from the program. She stated that several areas in the state, including the North Slope borough, have citizens participating in the program. MARIE DARLIN, COORDINATOR, AMERICAN ASSOCIATION OF RETIRED PERSONS (AARP) TASK FORCE, emphasized that the senior benefits program allows seniors to remain in Alaska. She spoke in support of the legislation. 10:25:34 AM Representative Hawker repeated one question raised by Senator Olson regarding those senior citizens currently living out of state. He explained that the question is addressed in the existing statute, Section 47.45.304. He recognized that the situation exists for certain seniors and did not want the limiting factor to lead to denied access. He noted that when a person leaves the state, they lose their benefits. The exceptions to that rule include receiving medical treatment out of state, the accompaniment of an individual's family member while receiving medical treatment outside of the state, and the ability for the department to make exceptions on a case by case basis. 10:28:27 AM HB 16 was HEARD and HELD in Committee for further consideration.