1998-01-23                     House Journal                      Page 2118
HB 348                                                                       
HOUSE BILL NO. 348 by the House Rules Committee by request of                  
the Governor, entitled:                                                        
                                                                               
"An Act relating to medical assistance for certain disabled persons;          
relating to personal care services for recipients of medical                   
assistance; and providing for an effective date."                              
                                                                               
was read the first time and referred to the Health, Education & Social         
Services and Finance Committees.                                               
                                                                               
The following fiscal notes apply:                                              
                                                                               
Fiscal notes (4), Dept. of Health & Social Services, 1/23/98                   
                                                                               
The Governor's transmittal letter dated January 22, 1998, appears              
below:                                                                         
                                                                               
"Dear Speaker Phillips:                                                        
                                                                               
It is imperative the State of Alaska offers strong incentives for people       
to choose employment over welfare.  The bill I am transmitting today           
is another effort in my continued campaign to affect positive change           

1998-01-23                     House Journal                      Page 2119
HB 348                                                                       
in our public assistance system.  It will prevent disabled Alaskans from       
having to choose between a job and health care by allowing them to             
buy into Medicaid coverage they may otherwise lose because of                  
income ineligibility.                                                          
                                                                               
The federal Balanced Budget Act of 1997 included a new state option            
permitting disabled persons to buy into Medicaid coverage if their             
family income is less than 250 percent of the official poverty line and        
they would, but for personal earned income, be eligible for                    
supplemental security income.  The provision also authorizes the state         
to require these Medicaid recipients to share the cost of coverage             
through premiums or other charges, on a sliding scale based on                 
income.  The premiums collected from the disabled are not expected             
to cover all costs associated with the additional Medicaid coverage.           
However, the benefits of encouraging employment, increasing                    
productivity, and maintaining care for the disabled should outweigh            
cost increases to the Medicaid program.                                        
                                                                               
The bill also amends the definition of one of the optional medical             
services available to recipients of state medical assistance.  The             
amendment, to the definition of "personal care services in a recipient's       
home," would allow the Department of Health and Social Services                
more flexibility in implementing the program and would result in a             
more appropriate delivery of services in this state.                           
                                                                               
Before the recent change in federal law regarding Medicaid, a disabled         
person with a family income above the eligibility line had few, if any         
options for coverage of medical care.  This situation provided a strong        
disincentive to continued employment because medical costs for the             
disabled often exceeded the income that disqualified them from                 
Medicaid coverage.  This bill is an opportunity to encourage disabled          
Alaskans to return to work without the threat of losing vital medical          
coverage.                                                                      
                                                                               
							Sincerely,                                                              
							/s/                                                                     
							Tony Knowles                                                            
							Governor"