1998-01-23                     Senate Journal                      Page 2276
SB 253                                                                       
SENATE BILL NO. 253 BY THE SENATE 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 and              
Social Services and Finance Committees.                                        
                                                                               
Fiscal notes published today from Health, Education and Social                 
Services (4).                                                                  
                                                                               
                                                                               

1998-01-23                     Senate Journal                      Page 2277
SB 253                                                                       
Governors transmittal letter dated January 22:                                 
                                                                               
Dear President Miller:                                                         
                                                                               
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 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            
                                                                               
                                                                               

1998-01-23                     Senate Journal                      Page 2278
SB 253                                                                       
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