Legislature(1999 - 2000)
04/17/2000 02:05 PM House FIN
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CS FOR SENATE BILL NO. 73(FIN)
"An Act relating to assisted living homes; and
providing for an effective date."
SHARON CLARK, STAFF, SENATOR MILLER testified in support of
the legislation, on behalf of the sponsor. She observed that
the State of Alaska with its scattered population represents
a unique challenge to provide services to residents who need
assisted living supports. The intent of this bill is to
provide good health care for long-term care residents in
assisted living homes. While the term Assisted Living in
Alaska includes smaller and larger facilities, the primary
focus is on smaller facilities (15 beds or less.) Assisted
living homes, which were formerly called adult foster care
homes, provide a cost effective alternative to institutional
care. The program is regulated by the old general assistance
regulations, which need to be revisited and updated to be in
line with the standard of care that is practiced by the
other assisted living programs.
The rate was established in 1983 at $35 dollars a day. The
Alaska Rate Study Report completed December 1998 found that
the value of $35 dollars in 1983 would be equal to $68.30 in
1998 dollars. The rate study concludes that the general
relief rate be increased by $38.31.
Ms. Clark reiterated that the purpose and intent of the
legislation was to increase the daily rate paid to the "mom
and pop" (15 beds and less) facilities by the state for the
vulnerable adults that are unable to provide safely for
their own medical, emotional and personal care needs. She
noted that the original intent by Senator Miller was to
increase the base rate from $34.50 dollars to $70.00 dollars
per day, based on individual care needs. Senator Miller
acknowledged that the increase to $70 dollars was not
supportable with the current budget. He therefore supports a
base rate of $42.25 dollars a day the first year and $51.00
dollars a day for the second and following years. This would
include a geographical cost of living differential.
Ms. Clark observed that Senator Miller has a personal
interest in the legislation as the result of the care of his
father.
Ms. Clark referred to a report published by the from the
Alaska Commission on Aging "Alaska Seniors', Living Longer,
Growing Strong" February 1998. "Alaska is second in the
nation in a proportional growth of our senior population-
with a 42% increase in people age 65+ in only 6 years (1990-
1996... Equally impressive is the anticipated long-term
growth of Alaska Senior population. In 1980, there were 11,
547 people over the age of 65. Using moderated growth
projections, population experts agree this number may reach
80,927 by the year 2015. This is a cost of 600% increase in
only 35 years."
Ms. Clark maintained that caregivers cannot afford to remain
in business. She questioned how care would be given to
Alaska's seniors. Nursing homes and hospitals cost over $300
dollars a day. She stressed that an increase in the rate
would keep people in their own communities and in smaller
homes.
Representative Phillips noted that the rate was increased to
$75 dollars in the House HESS Committee. Ms. Clark stated
that the sponsor supports the increase.
Co-Chair Therriault observed that the issue is the overall
cost. The Alaska Mental Health Trust Authority will cover a
portion for the first two years. The Trust indicated that
they would cover an additional year at a smaller amount.
Representative Phillips observed that the Trust and the
Division of Mental Health have requested in the fiscal note
that the payment be increased to $100 dollars.
DWIGHT BECKER, PROGRAM COORDINATOR, DIVISION OF SENIOR
SERVICES, DEPARTMENT OF ADMINISTRATION, ANCHORAGE provided
information on the legislation. He responded to a question
by Vice Chair Bunde. He agreed that closer of the "mom and
pop" organizations would result in increased state support
and cost.
KAY BURROWS, DIRECTOR, DIVISION OF SENIOR SERVICES,
DEPARTMENT OF ADMINISTRATION ANCHORAGE testified via
teleconference in support of the legislation. She stressed
the need for small assisted living homes to receive an
increased rate.
ALISON ELGEE, DEPUTY COMMISSIONER, DEPARTMENT OF
ADMINISTRATION testified in support of the legislation. The
legislation impacts both the Division of Senior Citizens and
Division of Mental Health clientele. General relief payments
do not go to every assisted living client. Personal
resources are offset. The department also looks at other
forms of public assistance and waivers.
Vice Chair Bunde questioned the impact of the loss of small
assisted living homes.
Ms. Elgee responded that the information was not currently
available. She clarified that the concern is that the
existing assisted living providers would refuse to accept
general relief clients. These clients are vulnerable and
subject to abuse. More expensive alternatives would be
required if they were not cared for by the smaller private
providers. Assisted living homes cost approximately $70
dollars a day versus $300 dollars a day in a nursing home.
Not all of the placements would be eligible for nursing home
assistance. She explained that the Department of
Administration initiated a study in response to complaints
that the rates ($35 dollars a day) were insufficient. She
explained that the 1998 study identified a cost of $70
dollars a day. Individuals in assisted living are allowed to
keep $75 to $100 dollars a day in personal needs allowance
before the department offsets the cost.
Vice Chair Bunde questioned if people could be feed for $35
dollars a day, let alone be cared for at that rate.
SB 73 was heard and HELD in Committee for further
consideration.
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