Legislature(2023 - 2024)ADAMS 519

04/20/2023 01:30 PM House FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 58 ADULT HOME CARE; MED ASSISTANCE TELECONFERENCED
Heard & Held
-- Public Testimony --
+= HB 59 MEDICAID ELIGIBILITY: POSTPARTUM MOTHERS TELECONFERENCED
Heard & Held
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
HOUSE BILL NO. 58                                                                                                             
                                                                                                                                
     "An Act  relating to medical assistance  for recipients                                                                    
     of Medicaid  waivers; establishing  an adult  care home                                                                    
     license  and procedures;  providing for  the transition                                                                    
     of  individuals from  foster care  to  adult home  care                                                                    
     settings; and providing for an effective date."                                                                            
                                                                                                                                
1:35:16 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster  asked staff from  the Department  of Health                                                                    
(DOH) to review the fiscal notes.                                                                                               
                                                                                                                                
TONY NEWMAN,  DIRECTOR, DIVISION OF SENIOR  AND DISABILITIES                                                                    
SERVICES, DEPARTMENT  OF HEALTH,  thanked the  committee for                                                                    
hearing the bill  again. He briefly explained  that the bill                                                                    
would provide elderly Alaskans  and adults with disabilities                                                                    
enrolled in  the Medicaid home  and community  based waivers                                                                    
with a  new living option  called adult home care.  The bill                                                                    
established a  new licensed residential  setting type  and a                                                                    
new  certified service  that would  be overseen  by DOH.  He                                                                    
offered  to take  questions or  provide an  overview of  the                                                                    
fiscal notes.                                                                                                                   
                                                                                                                                
Co-Chair Foster asked for a review of the fiscal notes.                                                                         
                                                                                                                                
Mr.  Newman reviewed  the first  fiscal note,  OMB component                                                                    
number 2663,  control code fpGii. The  fiscal note primarily                                                                    
funded  one  position  to  begin   in  FY  25,  which  would                                                                    
implement and  operationalize the  adult home  care service.                                                                    
The   work  would   entail  developing   the  organizational                                                                    
procedures  around certifying  and monitoring  providers who                                                                    
offer the service, in addition  to certifying and monitoring                                                                    
the providers.  The position was  new, and it  would involve                                                                    
setting up  the program,  providing training, and  making it                                                                    
clear  to  families  and  providers   how  the  service  was                                                                    
different from  existing service options. The  note included                                                                    
the salary  of $119,100  for one  health program  manager II                                                                    
with $2,300  for some minimal  travel, $14,000  for services                                                                    
(i.e.,  core service  costs for  an  employee including  IT,                                                                    
lease costs, HR, and fiscal  management services costs), and                                                                    
$4,000 for  commodities. The costs  would be funded  with 50                                                                    
percent federal Medicaid funds and  50 percent state general                                                                    
Medicaid funds.                                                                                                                 
                                                                                                                                
1:38:28 PM                                                                                                                    
                                                                                                                                
Mr.  Newman reviewed  the second  fiscal note  OMB component                                                                    
number 3234, control  code boKBB. The note was  zero and had                                                                    
been  compiled  by  the department  to  demonstrate  to  the                                                                    
legislature that  it had  considered what  it would  cost to                                                                    
add a  new service. The  department had determined  it would                                                                    
have a net  zero impact on the Medicaid  Services budget. He                                                                    
reminded the committee  that the service was  for people who                                                                    
were already eligible for Medicaid  home and community based                                                                    
waiver services. He  explained it would be  a more expensive                                                                    
service in some cases and  a less expensive service in other                                                                    
cases, leading to a net zero estimate.                                                                                          
                                                                                                                                
1:39:32 PM                                                                                                                    
                                                                                                                                
RENEE GAYHART,  DIRECTOR, DIVISION OF HEALTH  CARE SERVICES,                                                                    
DEPARTMENT  OF HEALTH,  reviewed the  last fiscal  note, OMB                                                                    
component  number 245,  control code  Pvlvr. The  department                                                                    
was requesting  one PCN [position control  number] beginning                                                                    
in FY  25 for  $105,000 with $10,000  in travel,  $14,000 in                                                                    
services,  and $1,000  in  commodities.  The department  was                                                                    
looking  at  licensing approximately  40  new  homes in  the                                                                    
first  year  and  the  position  would  be  responsible  for                                                                    
regulations  drafting,  policies and  procedures,  training,                                                                    
and outreach to  the new provider types.  The department was                                                                    
requesting an  additional PCN  in FY  29 to  reflect doubled                                                                    
cost.  She explained  there was  an  uptick any  time a  new                                                                    
license  provider  type came  on  board  and the  department                                                                    
assumed  it  would  continue to  see  additional  facilities                                                                    
wanting  to be  licensed under  the program;  therefore, the                                                                    
department was  projecting 40  new homes  in the  first year                                                                    
and a similar  amount in the outyears.  The department would                                                                    
also  have  to do  recertifications  or  relicensing in  the                                                                    
fifth year.  She explained  the original  licensed providers                                                                    
would be relicensed as new  licenses were coming on board as                                                                    
well.  She relayed  that if  the funding  was approved,  the                                                                    
department would be  able to submit a path  for the position                                                                    
in FY  29 and attach the  approval of HB 58.  The department                                                                    
would still have to go through  the budget and the Office of                                                                    
Management   and  Budget   (OMB)  to   get  a   PCN  through                                                                    
classification.                                                                                                                 
                                                                                                                                
1:41:55 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster OPENED public testimony.                                                                                        
                                                                                                                                
MARGE STONEKING,  ADVOCACY DIRECTOR, AARP  ALASKA, ANCHORAGE                                                                    
(via teleconference), read from prepared remarks:                                                                               
                                                                                                                                
     AARP   strongly   supports  continued   expansion   and                                                                    
     improvement   of  home   and  community   based  waiver                                                                    
     services  to  better  serve  our  fast  growing  senior                                                                    
     population, including  offering a range  of residential                                                                    
     settings. The  vast majority  of us  want to  remain in                                                                    
     our own  homes and communities  as we age and  prefer a                                                                    
     home   setting   over   a   nursing   home   or   other                                                                    
     institutional settings.  Of course,  as you  know, home                                                                    
     and community based services (HCBS)  cost a fraction of                                                                    
     what otherwise  required nursing home care  would cost.                                                                    
     In  the home  care workforce  crisis combined  with our                                                                    
     rapidly  aging population,  its  threatening access  to                                                                    
     HCBS for  private pay and  state pay alike and  that is                                                                    
     already   driving    people   into    assisted   living                                                                    
     facilities. This  could additionally drive  elders into                                                                    
     institutional care  and because few can  afford nursing                                                                    
     home  care,  could  ultimately  increase  the  Medicaid                                                                    
     rolls.  That's why  we need  to  use all  tools in  the                                                                    
     toolbox  to expand  home  and  community based  service                                                                    
     options  using proven  service models  from across  the                                                                    
     nation   to  offer   choices   to   appeal  to   waiver                                                                    
     participants and perspective workers alike.                                                                                
                                                                                                                                
     Adult home care is one  such solution and AARP welcomes                                                                    
     the  administration proposing  adult  home  care as  an                                                                    
     additional  service option  and adult  care homes  as a                                                                    
     new residential  setting for [inaudible]  residents. It                                                                    
     is our understanding that HB  58 will provide a pathway                                                                    
     to   creating  a   lower   administrative  burden   for                                                                    
     operators  than group  assisted  living  homes and  the                                                                    
     intent  is to  offer elders  and others  the option  of                                                                    
     more homelike  settings with  lower level  services and                                                                    
     fewer residents.  For these  reasons, AARP  supports HB
     58 and looks forward to  working with the department on                                                                    
     regulations  required in  the  bill. We  also urge  the                                                                    
     Department  of   Health,  with   the  support   of  the                                                                    
     legislature,  to stand  up additional  initiatives that                                                                    
     directly support  the aging in  place component  of the                                                                    
     governor's   Healthy  Families   Initiative,  including                                                                    
     participant directed  care. Aging in place  is what the                                                                    
     vast majority  of older  Alaskans want  to do  and home                                                                    
     care services and support cost  the state a fraction of                                                                    
     what institutional care does.                                                                                              
                                                                                                                                
Co-Chair  Foster  noted  that  Representative  Coulombe  had                                                                    
joined the meeting.                                                                                                             
                                                                                                                                
1:45:52 PM                                                                                                                    
                                                                                                                                
ROBERT   TASSO,   HEALTH   AND  SOCIAL   SERVICES   PLANNER,                                                                    
GOVERNOR'S  COUNCIL ON  DISABILITIES AND  SPECIAL EDUCATION,                                                                    
ANCHORAGE  (via teleconference),  spoke  in  support of  the                                                                    
legislation and  the companion bill  SB 57.  The legislation                                                                    
would  expand   home  and   community  based   services  and                                                                    
establish a new residential  setting category for adult home                                                                    
care.  The  bill  would establish  several  main  goals  for                                                                    
stakeholders,  particularly   allowing  legally  responsible                                                                    
individuals  including family  members to  care for  seniors                                                                    
and individuals  with disabilities and to  receive financial                                                                    
support  for the  service.  The bill  would  also allow  for                                                                    
continuity of care for individuals  to provide the necessary                                                                    
support for the  family providing care and  would lower cost                                                                    
and  decrease the  administrative  burden normally  required                                                                    
for  an adult  assisted living  home. The  bill provided  an                                                                    
opportunity   for  enhanced   support   for  caregivers   of                                                                    
individuals with  disabilities or  individuals aging  out of                                                                    
the  foster   care  system.   He  highlighted   the  current                                                                    
workforce  crisis  and  relayed  that the  bill  would  help                                                                    
address the  issue that many  providers had  been struggling                                                                    
with. The  governor's council supported  the passage  of the                                                                    
bill.                                                                                                                           
                                                                                                                                
Co-Chair Foster CLOSED public testimony.                                                                                        
                                                                                                                                
Representative  Galvin asked  if the  fiscal notes  included                                                                    
receipts for licenses. She wondered if  it was not a part of                                                                    
the overall consideration.                                                                                                      
                                                                                                                                
Ms.  Gayhart  replied  that  it  would  not  be  taken  into                                                                    
consideration until  DOH drafted the  regulations. Currently                                                                    
the license  fee was  quite low  at about  $25 per  bed. The                                                                    
department had not  factored it into account  because it did                                                                    
not yet know how many  beds would come online. She explained                                                                    
it  would be  included  in the  outyears.  She stated  there                                                                    
would be limited receipts, but not to begin with.                                                                               
                                                                                                                                
Representative Galvin  wondered if it  was common to  have a                                                                    
placeholder  in future  years for  accounting purposes.  She                                                                    
suggested making note of the issue in the drafting.                                                                             
                                                                                                                                
HB  58  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
Co-Chair Foster noted  he intended to schedule  the bill the                                                                    
following week. His staff would  work with committee members                                                                    
regarding an amendment deadline.                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
HB 59 Public Testimony Rec'd by 4-17-23.pdf HFIN 4/20/2023 1:30:00 PM
HB 59
HB 59 HFIN Response questions 041823.pdf HFIN 4/20/2023 1:30:00 PM
HB 59