Legislature(2005 - 2006)HOUSE FINANCE 519
05/05/2005 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB110 | |
| HCR12 | |
| SB110 | |
| HB106 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 291 | TELECONFERENCED | |
| + | HB 297 | TELECONFERENCED | |
| + | HCR 12 | TELECONFERENCED | |
| + | SB 142 | TELECONFERENCED | |
| + | SB 144 | TELECONFERENCED | |
| + | SB 150 | TELECONFERENCED | |
| + | SB 130 | TELECONFERENCED | |
| += | HB 106 | TELECONFERENCED | |
| = | SB 110 | ||
| + | TELECONFERENCED |
HOUSE BILL NO. 106
An Act establishing the senior care program and
relating to that program; creating a fund for the
provision of the senior care program; repealing ch. 3,
SLA 2004; and providing for an effective date.
2:32:52 PM
JOEL GILBERTSON, COMMISSIONER, DEPARTMENT OF HEALTH & SOCIAL
SERVICES, noted that HB 106 was a bill relating to health
care benefits available to eligible low-income senior
citizens.
In 2004, the Senior Care program was enacted and provided
for needs-based cash assistance and a prescription drug
benefit. Today, approximately 6,800 seniors with incomes
below the 135% percent of the federal poverty level for
Alaska receive $120 a month in cash assistance through the
Senior Care program. The program has been successful in
reaching senior citizens in Alaska that are truly in need of
cash assistance.
Commissioner Gilbertson added that the Senior Care program
is anticipated to sunset no later than January 1, 2006. HB
106 would repeal the temporary law created last year and
replace it with a permanent law that would strengthen the
Senior Care program, allowing it to continue. He stressed
the crucial need for the State to continue providing support
for Alaska's most needy senior citizens beyond January 2006.
The proposal to improve Senior Care would be through
creation of a supplement to the recently enacted federal
Medicare drug benefit for Alaska's seniors. Under the new
federal Medicare benefit, many seniors are still required to
pay premium and deductible expenses for prescription drugs
out of their own pockets. For Alaska seniors with incomes
up to 300% percent of the federal poverty level, Senior Care
would pay the premiums and deductibles on the seniors
behalf; a benefit of approximately $670 dollars per person
annually. Seniors with Medigap or other comparable coverage
would be eligible to receive the benefit as long as they
meet the basic income and asset standards for Senior Care.
Commissioner Gilbertson anticipated over 40% percent of the
estimated 41,000 Alaska seniors would be eligible for the
Senior Care benefit. Passage of the legislation would
result in, virtually all seniors in Alaska being eligible
for prescription drug coverage through a combination of
federal, State, and employer-sponsored drug plans as of
January 2006. That represents an incredible achievement;
adequate prescription drug coverage remains a top priority
for seniors.
2:38:12 PM
MARIE DARLIN, VOLUNTEER, ALASKA ASSOCIATION OF RETIRED
PERSONS (AARP), JUNEAU, voiced strong support for HB 106,
including the amendments before the Committee. She
explained that the bill would be helpful and welcome for
older Alaskans that are most in need. She urged support.
2:40:22 PM
LINDA GOHL, DIRECTOR, ALASKA COMMISSION ON AGING, DEPARTMENT
OF HEALTH AND SOCIAL SERVICES, voiced support for the
legislation. She noted that seniors would prefer the 300%
level, however, HB 106 would provide a reasonable
compromise. The drug benefit program is critical.
2:41:57 PM
Representative Hawker MOVED to ADOPT Amendment #1, #24G-1,
5/5/05. (Copy on File). Co-Chair Chenault OBJECTED for
discussion purposes.
Representative Hawker explained that the amendment would
change federal poverty level amount from 300% to 175% and
sunset June 30, 2007.
Representative Hawker noted changes on the amendment, Page
1, Line 9: "Reverts to the unreserved general fund after
all valid obligations June 30, 2007 are met".
Commissioner Gilbertson voiced support for the amendment.
2:44:37 PM
Co-Chair Chenault WITHDREW his OBJECTION. There being NO
further OBJECTION, Amendment #1 was adopted.
Representative Hawker referenced the four fiscal notes from
the Department of Health and Social Services. He inquired
how the funding was anticipated to be spent.
JANET CLARKE, ASSISTANT COMMISSIONER, DIVISION OF FINANCE
AND MANAGEMENT SERVICES, DEPARTMENT OF HEALTH AND SOCIAL
SERVICES, summarized the fiscal note handout. (Copy on
File).
In FY06, it is estimated that the Senior Care Program will
cost $6.87 million dollars; in FY07, the cost will be
$13.212 million dollars. Currently, the fund balance is
$8.86 million dollars. In FY06, no general funds will be
needed for the program because of forward funding. In FY07,
approximately $12 million general fund dollars will be
necessary. The program, currently, will sunset midway FY06.
2:48:17 PM
Representative Hawker asked if the numbers were consistent
with the reconciled ones from the senior cash care benefit.
2:49:06 PM
JON SHERWOOD, DEPARTMENT OF HEALTH & SOCIAL SERVICES, stated
that at this time, there are fewer than 7,000 participants
in the program. It is anticipated that once the program
begins, that number will increase to 7,000. When the drug
benefit is added, the program could increase approximately
4,100, projected by FY07. There is no overlap between those
numbers and that the cash assistance program does not
provide any drug benefit.
2:50:25 PM
In response to comments by Representative Hawker,
Commissioner Gilbertson explained that the statement
regarding cash benefits was accurate and relates to existing
populations. Those individuals will have no premium or
deductible through federal law. There is no way to provide
them the drug benefit. Cash assistance is the only way to
deliver a benefit to them.
2:51:52 PM
Representative Hawker referenced the fiscal note, indicating
the Senior Care fiscal note for four full-time employees.
He asked if any were new positions. Ms. Clarke explained
that in the FY06 budget, the Department eliminated all
Senior Care positions because the program sunset. Many of
those positions still exist and that the note would only ads
them back into employment.
2:52:46 PM
Representative Holm asked if Amendment #1 would affect the
fiscal note. Ms. Clarke replied it did and had been taken
into consideration with the revised note.
2:53:14 PM
Representative Foster MOVED to REPORT CS HB 106 (FIN) out of
Committee with individual recommendations and with the
accompanying fiscal notes. There being NO OBJECTION, it was
so ordered.
CS HB 106 (FIN) was reported out of Committee with a "no
recommendation" and with four new zero fiscal notes by the
Department of Health & Social Services.
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