Legislature(2001 - 2002)

03/20/2001 03:38 PM House MLV

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
HB  88-PIONEERS' AND VETERANS' HOME/ADVISORY BD                                                                               
                                                                                                                                
CHAIR CHENAULT announced the final  order of business, HOUSE BILL                                                               
NO. 88,  "An Act changing the  name of the Alaska  Pioneers' Home                                                               
to  the Alaska  Pioneers' and  Veterans' Home  and of  the Alaska                                                               
Pioneers'  Homes  Advisory  Board  to the  Alaska  Pioneers'  and                                                               
Veterans' Home Advisory Board; relating  to services for veterans                                                               
in the home; relating to the  advisory board for the home; making                                                               
other amendments  to the  statutes relating  to the  home; making                                                               
conforming  amendments to  other statutes;  and providing  for an                                                               
effective date."                                                                                                                
                                                                                                                                
Number 1745                                                                                                                     
                                                                                                                                
JIM  DUNCAN, Commissioner,  Department  of Administration  (DOA),                                                               
presented HB 88  on behalf of the governor.   Commissioner Duncan                                                               
informed  the  committee  that Alaska  has  had  a  long-standing                                                               
commitment  to recognize  the commitments  veterans have  made to                                                               
this country and the State of  Alaska.  However, Alaska is one of                                                               
two states  that does not have  a state veterans' home.   In 1992                                                               
the  legislature passed  a  statute that  DOA  would establish  a                                                               
veterans'   home  and   would  allow   application  for   federal                                                               
assistance for construction of such  a home.  The statute clearly                                                               
said that the  operating costs of the home should  be paid for by                                                               
the  residents  and the  federal  government.   However,  nothing                                                               
materialized  as a  result of  that legislation.   In  1998 [DOA]                                                               
made  an amendment  to that  statute  in order  to allow  nursing                                                               
homes  to provide  nursing care  [to veterans]  in an  attempt to                                                               
increase   federal  dollars   and   make   state  general   funds                                                               
unnecessary.    Again, nothing  happened.    Therefore, [DOA]  is                                                               
present today without a facility  or system in place specifically                                                               
for veterans.                                                                                                                   
                                                                                                                                
COMMISSIONER DUNCAN  explained that  due to  the lack  of action,                                                               
the governor appointed a cabinet-level  task force to review what                                                               
has been done, where the situation  is, and what might be done to                                                               
recognize the veterans in Alaska.   That task force was comprised                                                               
of  the Commissioners  of the  Department of  Administration, the                                                               
Department of  Military & Veterans'  Affairs, and  the Department                                                               
of Health  & Social Services.   The task force  evaluated several                                                               
options before  agreeing on  this proposal  [embodied in  HB 88].                                                               
The  option  of  a  stand-alone  veterans'  home  in  Alaska  was                                                               
reviewed.  However, it was found  to be costly.  An 80-bed stand-                                                               
alone  veterans'   home  would   cost  about  $24.3   million  to                                                               
construct, of which  the state's share would be  $8.5 million and                                                               
the federal  government would provide  the remainder.   Operation                                                               
of such an  80-bed home would cost about $7.2  million a year, of                                                               
which $2.4 million  would be from the state's general  fund.  The                                                               
conclusion  was  that  a  stand-alone  veterans'  home  would  be                                                               
costly, and  furthermore it would  require veterans to move  to a                                                               
central  location in  the state,  away from  their community  and                                                               
family.                                                                                                                         
                                                                                                                                
COMMISSIONER  DUNCAN  turned  to   the  second  option  that  was                                                               
evaluated:   the  Alaska Pioneers'  Home system.   There  are six                                                               
such homes spread across the  state.  Commissioner Duncan related                                                               
his  belief that  the  Alaska  Pioneers' Home  system  is a  fine                                                               
system.   That system was  evaluated in  regard to what  could be                                                               
done to recognize the commitment  that veterans have made and how                                                               
that system  could be expanded  to recognize veterans as  well as                                                               
to  provide  a  veterans'  preference.    As  a  result  of  this                                                               
evaluation it became clear that  the Alaska Pioneers' Home system                                                               
provided a system that was  already in place, with infrastructure                                                               
that  isn't  being  fully  utilized   in  that  there  is  unused                                                               
capacity.   Secondly, use of  the Pioneers' Home system  would be                                                               
less expensive  than constructing  a stand-alone home.   Thirdly,                                                               
because  the Pioneers'  Homes are  located throughout  the state,                                                               
veterans  could  enter  those  homes and  stay  closer  to  their                                                               
families   and   communities   while  receiving   quality   care.                                                               
Therefore, the task  force recommended to the  governor that [he]                                                               
proceed with  legislation, HB  88, that  is before  the committee                                                               
today.                                                                                                                          
                                                                                                                                
Number 1951                                                                                                                     
                                                                                                                                
COMMISSIONER  DUNCAN explained  that HB  88 would  accomplish the                                                               
following.  Firstly,  it provides recognition to  the veterans in                                                               
this state.  Secondly, it  provides for a veterans' preference in                                                               
the  Pioneers'  Home  system.     Thirdly,  it  provides  veteran                                                               
representation  on  the  Pioneers'  Home  Advisory  Board.    The                                                               
recognition is due to the  recommendation to change the name from                                                               
the  Alaska Pioneers'  Home system  to the  Alaska Pioneers'  and                                                               
Veterans' Home  system.   The veterans'  preference would  be for                                                               
125 beds, which amounts to 21  percent of the funded beds, in the                                                               
current system.   Currently,  there is a  system capacity  of 600                                                               
beds.  Therefore,  if there were vacant beds and  there were less                                                               
than 125  veterans in the homes  and a bed became  available, the                                                               
next veteran  on the list would  be admitted.  At  present, there                                                               
are 90  veterans in the Pioneers'  Homes.  Of the  183 persons on                                                               
the  active waiting  list, 56  are veterans.   Therefore,  if the                                                               
veterans'  preference  was  in  place and  the  beds  were  fully                                                               
funded,  there  would be  90  more  beds  funded and  another  35                                                               
veterans could be  admitted as well as 50 some  people who may or                                                               
may not  be veterans.   Commissioner Duncan highlighted  that the                                                               
real  benefit of  HB  88 would  be that  it  serves veterans  and                                                               
pioneers that  are nonveterans.   He informed the  committee that                                                               
currently there are  90 vacant beds, which  are primarily located                                                               
in the Anchorage, Palmer, and Sitka Pioneers' Homes.                                                                            
                                                                                                                                
COMMISSIONER  DUNCAN turned  to the  topic of  how the  veterans'                                                               
preference  would work  in regard  to  the number  of men  versus                                                               
women.    He informed  the  committee  that  of the  90  veterans                                                               
already in the  homes, 9 are females and 82  are males.  Clearly,                                                               
there  are  female veterans  who  would  also benefit  from  this                                                               
proposal.                                                                                                                       
                                                                                                                                
Number 2176                                                                                                                     
                                                                                                                                
COMMISSIONER DUNCAN continued with  the veteran representation on                                                               
the  advisory  board.    The Pioneers'  Home  Advisory  Board  is                                                               
currently a 7-member  advisory board and will remain  so under HB
88.  However,  the legislation requires that at least  two of the                                                               
members of the  advisory board will be veterans.   Currently, two                                                               
veterans serve on the advisory board.   It would also be required                                                               
that one  of the  veterans on the  Pioneers' Home  Advisory Board                                                               
would be the chair of the Alaska Veterans Advisory Council.                                                                     
                                                                                                                                
COMMISSIONER  DUNCAN highlighted  the  fact that  the new  system                                                               
[being proposed  in HB 88] would  not become part of  the federal                                                               
VA (U.S.  Department of Veterans  Affairs) system.   Commissioner                                                               
Duncan  said,  "We  are  not interested  in  seeing  the  federal                                                               
government  assume control  of this  system  and our  legislation                                                               
does not  provide for that."   This point  was made clear  to the                                                               
Secretary of  the Department  of Veterans Affairs.   "We  want to                                                               
maintain a  state-run system," he  said.   There is no  desire to                                                               
fall under  federal regulations,  rules, or  requirements because                                                               
Alaska's residency and age requirements would be impacted.                                                                      
                                                                                                                                
COMMISSIONER  DUNCAN  noted  that  there is  no  federal  funding                                                               
requested for this  system.  This legislation does  have a fiscal                                                               
note of about $5.2 million of  which $2.6 million would come from                                                               
the general fund  and $2.6 million from  Pioneers' Home receipts.                                                               
That [total of $5.2] would allow  the Pioneers' Homes to hire the                                                               
staff necessary  to fully staff  the 90  beds and thus  allow the                                                               
system  to  operate at  capacity.    "Without those  dollars,  we                                                               
couldn't  staff those  beds and  ... residents  could not  occupy                                                               
those beds," he pointed out.                                                                                                    
                                                                                                                                
[The tape was  reversed to Side B early, and  therefore there are                                                               
approximately  8 minutes  of blank  tape at  the end  of Side  A.                                                               
There is approximately  4 minutes of blank tape  at the beginning                                                               
of Side B.]                                                                                                                     
                                                                                                                                
TAPE 01-6, SIDE B                                                                                                               
                                                                                                                                
COMMISSIONER DUNCAN remarked, "But if  you look at the benefit of                                                               
the dollars  that are  being requested and  compare that  to what                                                               
the cost  would be if  we were to  operate a stand-alone  home, I                                                               
think you'll  find it's money  well-used."  Although  "we" aren't                                                               
interested  in allowing  "our"  system to  be  controlled by  the                                                               
federal government,  "we" are interested  in working with  the VA                                                               
administration  to   determine  whether  Alaska's   veterans  can                                                               
receive a waiver  in order that the benefits  veterans receive in                                                               
veterans'  homes in  other  states could  be  accessed under  the                                                               
proposed system.   There has  been no  agreement on that  to this                                                               
point.   However, Commissioner Duncan  noted that  work exploring                                                               
the possibility of a demonstration  program is continuing so that                                                               
a federal waiver could be obtained  in order to allow VA benefits                                                               
to be  used by  veterans in  the state.   Although such  a waiver                                                               
would be beneficial, it wouldn't  impact the general fund request                                                               
because [the  waiver] would allow  the benefit to go  directly to                                                               
the veteran to help pay for their cost of care.                                                                                 
                                                                                                                                
COMMISSIONER  DUNCAN informed  the  committee  that the  Pioneers                                                               
Advisory  Board reviewed  HB 88  and recommended  support of  it.                                                               
Commissioner Duncan noted that he  has reviewed HB 88 and doesn't                                                               
see  a downside;  it doesn't  do anything  that would  weaken the                                                               
present  Pioneers' Home  system.   In fact,  he viewed  HB 88  as                                                               
strengthening the  current system  and allowing  full utilization                                                               
of  the  system  while  providing needed  care  to  veterans  and                                                               
pioneers alike.                                                                                                                 
                                                                                                                                
Number 2081                                                                                                                     
                                                                                                                                
REPRESENTATIVE  GREEN  pointed  out  that  the  committee  packet                                                               
includes a  letter from the  governor that  says there are  78 on                                                               
the waiting list  while Commissioner Duncan is  saying that there                                                               
are  90 on  the waiting  list.   He asked  if the  numbers are  a                                                               
"moving target" or are there different sources of data.                                                                         
                                                                                                                                
COMMISSIONER DUNCAN  said that  the numbers  do change  as people                                                               
enter  and leave  the home.   He  specified that  he was  quoting                                                               
numbers from  January 31 and  February 1.  Furthermore,  a better                                                               
census of the number of those in  the home has been done that has                                                               
produced a more  definitive number for the number  of veterans in                                                               
the  Pioneers' Homes  [than the  original number].   The  numbers                                                               
change on a daily basis.                                                                                                        
                                                                                                                                
REPRESENTATIVE GREEN inquired  as to why there  are waiting lists                                                               
if there are vacant beds.                                                                                                       
                                                                                                                                
Number 2003                                                                                                                     
                                                                                                                                
JIM  KOHN,  Director,  Division  of  Alaska  Longevity  Programs,                                                               
Department of Administration, explained  that currently there are                                                               
90 vacant  beds that  are classified  as residential  level care.                                                               
Residential care  means that  residents would  receive assistance                                                               
with meals,  room, heavy  housecleaning, and  emergency response.                                                               
However,  there was  no staffing  for  that area  other than  the                                                               
kitchen  crew and  some housekeeping  staff.   Those  residential                                                               
beds have never been staffed with  direct care staff.  He pointed                                                               
out that  the applicants to the  waiting list are all  in need of                                                               
direct  care  services  with  most   of  them  requiring  24-hour                                                               
oversight.   Therefore,  the  lack of  direct  care staff  forces                                                               
those beds to  be vacant and thus the $5.2  million would provide                                                               
sufficient staff  to bring  in those  applicants and  serve their                                                               
needs.                                                                                                                          
                                                                                                                                
REPRESENTATIVE MURKOWSKI  noted that  currently in  the Pioneers'                                                               
Home there  are attempts to  accommodate spouses of those  on the                                                               
waiting list.  She related  her understanding that the same would                                                               
be true for veterans' spouses.   However, she inquired as how the                                                               
veteran's spouse  would be counted,  that is would the  spouse be                                                               
counted as a veteran or nonveteran.                                                                                             
                                                                                                                                
MR. KOHN said  that when couples wanted to enter  the home at the                                                               
same  time,  the home  tried  to  accommodate  them.   In  recent                                                               
history, one of the spouses  typically has Alzheimer's disease or                                                               
a  related disability  and  the spouse  or  independent wants  to                                                               
enter the  home at the  same time.  The  policy has been  to wait                                                               
until one  of the spouses  reaches the top  of the list  and then                                                               
there is  an attempt to  accommodate both at  the same time.   If                                                               
the  beds are  open in  the varying  levels of  care at  the same                                                               
time,  then it  is fairly  easy.   However,  if the  beds in  the                                                               
varying level  of care aren't open  at the same time,  it is more                                                               
difficult.   He explained that  in such circumstances  the policy                                                               
has been  to hold  the spouse  at the top  of the  active waiting                                                               
list   [until  such   time  that   both   individuals  could   be                                                               
accommodated].                                                                                                                  
                                                                                                                                
MR. KOHN informed  the committee that he was asked  by the Senate                                                               
State Affairs  Committee to draft  some regulations.  One  of the                                                               
items included in the regulations  is to place the aforementioned                                                               
policy in regulation.   He specified, "It  wouldn't have anything                                                               
to do  with veterans  or nonveterans;  it would  have to  do with                                                               
spouses."   He  indicated that  the [draft  regulations regarding                                                               
this matter]  read as follows:   "As one spouse would  get to the                                                               
top of  the waiting  list - whether  they got to  the top  of the                                                               
waiting list because  they were a veteran or  because they [were]                                                               
waiting  in line  on their  own accord  - ...  we would  then ...                                                               
would try to accommodate the other  spouse at the same time or at                                                               
least keep the spouse at the top  of the waiting list until a bed                                                               
opened up for that spouse."                                                                                                     
                                                                                                                                
Number 1737                                                                                                                     
                                                                                                                                
REPRESENTATIVE  MURKOWSKI expressed  concern that  she has  heard                                                               
regarding whether  a veteran's  spouse that  enters the  home [at                                                               
the same time as the veteran] would  be counted as one of the 125                                                               
veterans'  beds.    If  so,   the  125  veterans'  beds  wouldn't                                                               
necessarily  be filled  with veterans  if the  spouse is  allowed                                                               
entrance at the same time and takes a veteran preference bed.                                                                   
                                                                                                                                
MR. KOHN  explained that the presently  drafted regulations would                                                               
not  count a  nonveteran spouse  as  part of  the 125  [veterans'                                                               
preference beds].   The  regulation that  would allow  spouses to                                                               
enter  the home  at  the  same time  wouldn't  be dependent  upon                                                               
whether the spouses  were veterans or nonveterans,  only that one                                                               
of the  spouses would  be at  the top of  the [waiting]  list for                                                               
whatever reason.                                                                                                                
                                                                                                                                
REPRESENTATIVE KOTT said  that he was sure Mr.  Kohn was familiar                                                               
with letters  that the committee  has received from  Lisa Caress-                                                               
Beu,  Vice  President, Center  for  Advocacy  and Rights  of  the                                                               
Elderly (CARING), and Aileen Herring.   Both letters contain some                                                               
strong allegations that he thought should be addressed.                                                                         
                                                                                                                                
Number 1618                                                                                                                     
                                                                                                                                
REPRESENTATIVE KOTT  then turned  to Commissioner Duncan  and his                                                               
testimony that there is ongoing  work with the federal Department                                                               
of  Military &  Veteran Affairs  (DMVA) in  order to  ensure that                                                               
Alaska's  veterans   receive  the  same  monetary   amounts  that                                                               
veterans  around  the  country  receive.   He  noticed  that  the                                                               
committee  packet contains  a letter  from  U.S. Senator  Stevens                                                               
that expresses his  support of such a concept  and willingness to                                                               
help with  any statutory changes  in Congress.   He asked  if, in                                                               
order  for Alaska's  veterans  to receive  the  same benefits  as                                                               
veterans in other states, it would require a statutory change.                                                                  
                                                                                                                                
COMMISSIONER DUNCAN  answered that at  this point it  isn't clear                                                               
whether a statutory change would  be required.  Those discussions                                                               
are just beginning.                                                                                                             
                                                                                                                                
REPRESENTATIVE KOTT  returned to  his question to  Mr. Kohn.   He                                                               
expressed  his discomfort  in the  allegations [contained  in the                                                               
aforementioned  letters]   that  a  study  was   funded  and  the                                                               
University of  [Southern] California  experts were told  what "we                                                               
wanted to hear."                                                                                                                
                                                                                                                                
Number 1509                                                                                                                     
                                                                                                                                
MR.  KOHN   began  by  addressing  the   University  of  Southern                                                               
California study.   He  informed the  committee that  [those that                                                               
performed  the study]  included the  Chief of  [the Division  of]                                                               
Geriatrics,  a  world-renowned  expert on  assisted  living,  and                                                               
others.  Those  folks surveyed the Anchorage  Pioneers' Homes and                                                               
wrote  a  report  that  Mr.   Kohn  offered  to  share  with  the                                                               
committee.    That  report  didn't mention  that  there  were  no                                                               
nursing level residents  in the Pioneers' Homes.   Mr. Kohn said,                                                               
"Of  course there  are  nursing level  residents  in the  Pioneer                                                               
Homes."   Furthermore, the  entire country,  including the  VA is                                                               
going  to  assisted  living  homes for  long-term  care  for  the                                                               
elderly.   He  pointed out,  "In fact,  about 80  percent of  the                                                               
elderly in  nursing homes  are there temporarily  ....   They are                                                               
transitioned from acute care, which  would be hospital care, into                                                               
nursing  home  care for  rehabilitation  and  then out  into  the                                                               
community to assisted  living homes, their own  home with in-home                                                               
care, or many other options ...."   The fact that the VA has only                                                               
domiciliary care, a type of  residential care, in veterans' homes                                                               
has been  noted by U.S.  Secretary Principi.   Secretary Principi                                                               
also expressed the need  for the VA to catch up  with the rest of                                                               
the  nation to  move in  the direction  of assisted  living care.                                                               
Mr. Kohn paraphrased  Secretary Principi to have  said that since                                                               
the  Pioneers' Homes  are assisted  living homes,  this would  be                                                               
good a  opportunity to  demonstrate veterans  being cared  for in                                                               
assisted living homes and help the VA move in that direction.                                                                   
                                                                                                                                
MR. KOHN said  that the controversy penned in the  letters is one                                                               
that he  believes is a  national controversy.  He  explained that                                                               
over the last 20 years or  so the concept of skilled nursing care                                                               
facilities  where  elderly lived  out  their  lives has  changed.                                                               
Generally,  the elderly  don't live  out their  lives in  skilled                                                               
nursing homes anymore.   The current concept is one  in which the                                                               
elderly  enter assisted  living  homes,  which provide  nurturing                                                               
care and a social model of  care with medical care to support the                                                               
residents.    Mr. Kohn  remarked  that  the Pioneers'  Homes  are                                                               
somewhat  unlike  other  assisted  living  homes  in  the  nation                                                               
because  they have  a  strong  medical model.    For example,  in                                                               
pioneers' homes  nurses are on  staff around the clock,  which is                                                               
usually not  the case with  assisted living homes.   Furthermore,                                                               
the pioneers' homes do care  for individuals who could be nursing                                                               
level residents.                                                                                                                
                                                                                                                                
MR. KOHN  turned to one of  the concerns expressed in  one of the                                                               
letters  regarding the  amount  of staffing  if  a pioneers'  and                                                               
veterans' home program  was implemented.  The  $5.2 million price                                                               
was developed to take care of  the applicants on the waiting list                                                               
that would fill the approximately 90  beds.  That price was based                                                               
on 4.9 hours  [of care] per resident per day.   He explained that                                                               
in the long-term care industry  staffing is discussed in terms of                                                               
the number  of hours that can  be given to each  resident in each                                                               
24-hour period.   Mr. Kohn said, "We have tried  to maintain, and                                                               
have maintained  for the  most part, 4.9  hours per  resident per                                                               
day."   In the  Lower 48, skilled  nursing facilities  provide an                                                               
average of 2.5 [hours of care per resident per day].                                                                            
                                                                                                                                
MR.  KOHN informed  the committee  that the  Pioneers' Homes  are                                                               
currently  in  the  process  of  accrediting  the  homes  with  a                                                               
national  group,  the  Joint  Commission  on  [Accreditation  of]                                                               
Healthcare  Organization  (JCAHO).    That  commission  certifies                                                               
hospitals and has done so for maybe  50 or more years and now are                                                               
certifying  assisted living  homes.   The Alaska  Pioneers' Homes                                                               
will be the first [assisted  living homes] to be certified across                                                               
the  state.     A  couple  of   months  ago,  "we"  met   with  a                                                               
representative of JCAHO who taught  a class on what was necessary                                                               
to  achieve  certification.    After  the  program,  "we"  walked                                                               
through   the   Anchorage   Pioneers'    Home   and   the   JCAHO                                                               
representative remarked  that it  was a  very high  medical model                                                               
assisted  living home  while also  taking in  nursing home  level                                                               
residents.    Therefore,  there  have been  others  in  the  home                                                               
besides  the  University of  Southern  California  that feel  the                                                               
same.                                                                                                                           
                                                                                                                                
Number 1037                                                                                                                     
                                                                                                                                
MG  PHILLIP OATES,  Adjutant General/Commissioner,  Department of                                                               
Military  &  Veterans'  Affairs,  testified  via  teleconference.                                                               
General Oates remarked that one  of the most vexing challenges he                                                               
has had  has been  to help  craft a solution  to provide  care to                                                               
Alaska's veterans.  For many  reasons, it hasn't been possible to                                                               
acquire   the  funding   for   a   stand-alone  veterans'   home.                                                               
Furthermore, construction  of a stand-alone veterans'  home would                                                               
be in one location.  The  model that had been considered provided                                                               
fewer beds  in only one  location, with  a greater cost  and thus                                                               
would have been of less service  than the proposal embodied in HB
88.   General  Oates  emphasized  the need  to  do something  for                                                               
Alaska's veterans.   He  pointed out that  Alaska has  the second                                                               
highest per capita  number of veterans in the nation.   Alaska is                                                               
one of two  states that doesn't have a veterans'  home and is the                                                               
only  state   that  isn't  in   the  process  of   building  one.                                                               
Therefore, [the proposal  in HB 88] is an  important step forward                                                               
in providing  some veterans with  necessary care.   General Oates                                                               
charged anyone on  the committee who had  reservations to provide                                                               
another  solution.    He  specified  that  there  hasn't  been  a                                                               
solution thus far because of the dollars involved.                                                                              
                                                                                                                                
GENERAL OATES  explained that [HB  88] will provide,  in essence,                                                               
six  veterans'  homes  across  the  state  and  will  provide  an                                                               
opportunity to  work with the VA  in a direction that  it desires                                                               
to move.  He related his belief  that [HB 88] is a great solution                                                               
that is worthy of full support.   Furthermore, the time is now to                                                               
move  forward.   He  discussed Alaska's  historical  ties to  the                                                               
military.   He concluded  by saying  that [HB  88] will  not only                                                               
solve the problem but also provide a model for the nation.                                                                      
                                                                                                                                
Number 0771                                                                                                                     
                                                                                                                                
REPRESENTATIVE MURKOWSKI  turned to the difficulties  of a stand-                                                               
alone  veterans'  facility and  noted  her  agreement that  if  a                                                               
combination Pioneers'  and Veterans'  Home could be  achieved, it                                                               
could be  a model that  other states  could look to.   Therefore,                                                               
she wanted to find  a way to make it work.   She then pointed out                                                               
that  the  veterans' priorities  include  $200,000  to perform  a                                                               
study of a stand-alone veterans'  home as well as identifying the                                                               
needs of  veterans in Alaska.   She inquired as to  the status of                                                               
that funding.                                                                                                                   
                                                                                                                                
GENERAL OATES explained  that the $200,000 is in  the DMVA budget                                                               
to allow required studies, surveys  of the exact care that exists                                                               
in the state,  as well as to  work all the needs  of all veterans                                                               
at all levels.  He  acknowledged that the Pioneers' and Veterans'                                                               
Home would  be for  veterans that  are 65 and  older.   There are                                                               
other veterans with  other needs, and therefore  he indicated the                                                               
need to  establish the proper database  in order to allow  the VA                                                               
to  meet the  needs of  the veterans  that won't  be met  by this                                                               
study.  Also, [there is  the need] to provide greater involvement                                                               
in the Pioneers'  Home system with veterans'  service officers so                                                               
that it  can be determined  what further can be  established with                                                               
the  Pioneers'  Homes   systems.    He  noted   that  could  mean                                                               
[providing] veterans'  clinics on either a  permanent or rotating                                                               
basis, or  making pharmacies available to  the veterans' program,                                                               
or  surveying the  expansion of  the Pioneers'  Home in  order to                                                               
determine whether  there could be  improvements or  extensions to                                                               
those homes  without encumbering  all the  rules of  the VA.   He                                                               
echoed  earlier testimony  that the  VA  is looking  for new  and                                                               
innovative ways to proceed.                                                                                                     
                                                                                                                                
Number 0522                                                                                                                     
                                                                                                                                
REPRESENTATIVE  MURKOWSKI noted  that she  and General  Oates had                                                               
the opportunity  to speak with U.S.  Secretary Principi regarding                                                               
his ideas  and what  may be  acceptable to the  VA.   During that                                                               
conversation, the  term "pilot  project" came up.   She  asked if                                                               
there is any further discussion or movement in that direction.                                                                  
                                                                                                                                
GENERAL  OATES  answered that  [the  department]  has an  ongoing                                                               
dialogue with the VA, although the  majority of the work is being                                                               
done at the state level.   He informed the committee of a pending                                                               
visit to  the Pioneers' Homes in  order to determine if  they are                                                               
adequate.  He reiterated that  U.S. Secretary Principi was highly                                                               
impressed  with   the  Pioneers'  Homes  during   his  visit  and                                                               
commented  that the  Pioneers' Home  system is  better than  what                                                               
currently  exists in  many veterans'  homes.   Therefore, General                                                               
Oates felt  that the survey  would illustrate that  the Pioneers'                                                               
Homes  are  a high  standard  and  would allow  a  nontraditional                                                               
approach.                                                                                                                       
                                                                                                                                
GENERAL OATES informed the  committee that Alaska's congressional                                                               
delegation has  remarked on  the importance  of the  state taking                                                               
the  first  step  forward.   He  expressed  his  confidence  that                                                               
federal assistance  will be available.   He noted that  there has                                                               
been  a  pledge   of  support  from  U.S.   Senator  Stevens  and                                                               
Murkowski.  He predicted that if  the state takes the first step,                                                               
more federal assistance will be  secured while, at the same time,                                                               
the full support of Alaska's  congressional delegation and the VA                                                               
would be obtained.                                                                                                              
                                                                                                                                
Number 0278                                                                                                                     
                                                                                                                                
FRANCES  PURDY   testified  via  teleconference  in   support  of                                                               
veterans' homes  or a  veterans' home.   She recognized  that the                                                               
Pioneers'  Homes  afford the  ability  to  have a  noncentralized                                                               
veterans'  home.   However, she  was concerned  with the  figures                                                               
provided by the administration.   She informed the committee that                                                               
the $12.6  million in  fees that  are to be  generated by  the 90                                                               
beds  would  average to  about  $2,400  a  month.   However,  the                                                               
current cost of  a Pioneers' Home at the  Alzheimer's Disease and                                                               
Related  Dementia (ADRD)  level is  $4,040 a  month and  thus the                                                               
state  will have  to  subsidize those  beds.   For  comprehensive                                                               
care, the cost  is $4,920 a month and [is  projected] to increase                                                               
to $6,450 a  month.  Therefore, she questioned  how realistic the                                                               
underwriting is for these 90 beds.  The numbers don't add up.                                                                   
                                                                                                                                
MS.  PURDY  informed the  committee  that  the reason  there  are                                                               
vacant beds  is because, over  time, more people enter  the homes                                                               
at a higher level of care such  as an enhanced level of care, the                                                               
ADRD level,  or comprehensive  care.   The Pioneers'  Home hasn't                                                               
been able  to maintain  the staff to  meet the  increasing levels                                                               
[of care].  Although she  acknowledged that perhaps the Pioneers'                                                               
Homes  provide  4.9 hours  of  nursing  care  a day,  the  speech                                                               
therapy, special  nutrition needs, and physical  and occupational                                                               
therapy are  not provided.   "To some  degree, we  don't actually                                                               
have  the  answers  from  the Pioneer  Home,  the  Department  of                                                               
Administration,  [regarding] what  the  impact is  of the  higher                                                               
number of people coming in at the higher level of care."                                                                        
                                                                                                                                
MS.  PURDY informed  the committee  that the  administration also                                                               
hasn't addressed the  issue of the increased number  of people on                                                               
the stipend program.   She explained that the  stipend program is                                                               
the state's answer to not placing people on Medicaid.                                                                           
                                                                                                                                
TAPE 01-7, SIDE A                                                                                                               
                                                                                                                                
MS.  PURDY continued  by pointing  out  that the  stipend is  100                                                               
percent  state funds.   If  people were  [required] to  apply for                                                               
Medicaid,  then the  state would  only  fund 50  percent and  the                                                               
federal government would provide the  other 50 percent.  However,                                                               
in  order  to  receive  Medicaid,   some  changes  regarding  the                                                               
residency requirement  for the  Pioneers' Home  would have  to be                                                               
made.  Ms. Purdy said, "What we  appear to be doing with this [HB
88] ..., the financing part of  this, is that the state will have                                                               
an  increasingly higher  burden financially  in order  to sustain                                                               
the services."                                                                                                                  
                                                                                                                                
Number 0150                                                                                                                     
                                                                                                                                
MARTY  MARGESON  testified  via teleconference.    She  read  the                                                               
following testimony:                                                                                                            
                                                                                                                                
     My father is  a veteran and has been a  resident in the                                                                    
     Anchorage Pioneer Home ADRD unit  since 1997; his rates                                                                    
     have more  than doubled  in his  3-year residency.   In                                                                    
     July  he will  pay  $4,655 for  assisted  living.   The                                                                    
     staffing shortage is so acute  that the Pioneer Home is                                                                    
     unable to fill  its beds and has  approximately 45 beds                                                                    
     vacant in the  Anchorage Home alone.  I  do not believe                                                                    
     this  bill   will  provide  enough  staffing   for  the                                                                    
     incoming  residents  because  it  only  staffs  to  the                                                                    
     enhanced assisted  living level  needs - this  level of                                                                    
     care  continues   to  be   readily  available   in  our                                                                    
     community  small  assisted   living  homes  with  rates                                                                    
     starting at  $2,000 a month;  the Pioneer Home  cost is                                                                    
     $4,490 per month  for this level of care.   Why would a                                                                    
     veteran leave  a small homey  assisted living  home and                                                                    
     pay double for institutional care?                                                                                         
                                                                                                                                
     My dad  left his  wonderful small assisted  living home                                                                    
     when he  required 24-hour  monitoring in  the "alarmed"                                                                    
     ... ADRD  unit in  1997 ....   My  dad moved  [into the                                                                    
     ADRD unit]  for nursing care.   ... although  his rates                                                                    
     have  doubled,  the  number  of  nurses  has  declined.                                                                    
     There  is no  longer a  doctor  on staff;  there is  no                                                                    
     longer 24-hour RN  coverage in the ADRD unit.   This is                                                                    
     important,   because  injuries   occur  when   dementia                                                                    
     residents become  violent.  When  my dad was  beaten by                                                                    
     another resident  there was  no RN  in the  building to                                                                    
     assess  his  injuries  -  the  LPN  thought  she  could                                                                    
     bandage  his   wounds.    The  emergency   room  doctor                                                                    
     required  full  facial  X-rays and  stitches.    Had  I                                                                    
     listened to the LPN  assessment I would have endangered                                                                    
     my dad's health.   More RN coverage is  needed.  During                                                                    
     the night  you are lucky  to have  one RN for  200 plus                                                                    
     residents.                                                                                                                 
                                                                                                                                
     This  bill  will   encourage  veterans  needing  higher                                                                    
     levels  of  care  in the  ADRD-Comprehensive  units  to                                                                    
     enter the Pioneer Home, but  this bill will not furnish                                                                    
     enough staff  to cover their  needs, and  therefore the                                                                    
     current residents  will suffer  more shortages.   As an                                                                    
     advocate for  my father  [and] a  member of  Caring and                                                                    
     Anchorage  Northside  Family  Council,  I  continue  to                                                                    
     report  lack  of  staffing   to  feed  residents,  bath                                                                    
     residents,  and   to  provide   individual  therapeutic                                                                    
     activates  and  exercise   programs  necessary  to  the                                                                    
     health  and   dignity  of  dementia  residents.     Our                                                                    
     shortages are  great.  How  can one  physical therapist                                                                    
     or one activity  specialist who often doubles  as a bus                                                                    
     driver  provide  enough  stimulation  for  a  200  plus                                                                    
     highly  dependent  resident  population.   Our  seniors                                                                    
     deserve better  care, but  this bill  is not  the right                                                                    
     approach.                                                                                                                  
                                                                                                                                
Number 0417                                                                                                                     
                                                                                                                                
MS. MARGESON continued:                                                                                                         
                                                                                                                                
     First,  this bill  will continue  to incur  state cost.                                                                    
     Veterans  like my  father do  not  qualify for  nursing                                                                    
     home  or  assisted living  benefits.    To qualify  for                                                                    
     nursing  home  benefits,  my father  would  need  a  70                                                                    
     percent service-related mental  or physical disability.                                                                    
     He  has none.    What percentage  of  the Pioneer  Home                                                                    
     veterans meets this disability requirement?                                                                                
                                                                                                                                
     Secondly, although  the VA  Home is  a great  idea, the                                                                    
     majority of  new residents will, like  my father, enter                                                                    
     at the ADRD-Comprehensive  level, which will accelerate                                                                    
     the  number of  people  requiring nursing  care.   This                                                                    
     will continue  to stretch state coffers.   Furthermore,                                                                    
     it makes no  sense to pull these  veterans from nursing                                                                    
     homes  where they  can receive  Medicaid,  which is  50                                                                    
     percent  federal monies  50 percent  state monies,  and                                                                    
     put  them in  the  Pioneer Home  stipend program  which                                                                    
     costs the state  100 percent for their care.   How many                                                                    
     residents  were on  the stipend  five years  ago?   How                                                                    
     many are  on the stipend  today?   How many will  be on                                                                    
     the  stipend five  years from  now?   The state  can no                                                                    
     longer afford  100 percent coverage  - we need  to look                                                                    
     to federal  monies.  Veterans and  pioneers can qualify                                                                    
     for  Medicaid  if  they  have  skilled  nursing  needs.                                                                    
     Pioneer  Home  residents  on  feeding  tubes,  physical                                                                    
     therapy, et cetera meet this  criteria.  Small assisted                                                                    
     living homes  in our  community already  take advantage                                                                    
     of  federal funds  through the  Medicaid Choice  waiver                                                                    
     program.   Residents with dementia  can and  do qualify                                                                    
     for these federal assistance programs.                                                                                     
                                                                                                                                
     I  believe  the  Pioneer   Home  should  reinstate  the                                                                    
     skilled nursing  license to half  the home.   I believe                                                                    
     we, as  Alaskans, should  welcome federal  guidance and                                                                    
     oversight, which comes  with this money.   If our homes                                                                    
     have  health-safety  risks,   which  place  them  below                                                                    
     federal standards, then  we need to upgrade  them.  Our                                                                    
     seniors  deserve the  best; they  at least  deserve the                                                                    
     care  provided by  federal  guidelines.   I  understand                                                                    
     that  federal  monies  will  not  be  available  if  we                                                                    
     continue the  one-year residency requirement.   I don't                                                                    
     think  we   can  afford   to  keep   this  requirement.                                                                    
     Certainly,  if  we're  willing   to  turn  our  beloved                                                                    
     Pioneer  Home  into  a  veteran's  home,  we  could  be                                                                    
     willing to  abolish the residency requirement  and keep                                                                    
     our home's name, the Pioneers' Home.                                                                                       
                                                                                                                                
Number 0602                                                                                                                     
                                                                                                                                
MS. MARGESON concluded:                                                                                                         
                                                                                                                                
     I hardily support the building of  a VA Home.  I do not                                                                    
     support this  merger which  seeks to  create additional                                                                    
     funding  to  fill vacant  beds,  but  does not  provide                                                                    
     enough  funding   to  cover  the  higher   needs  ADRD-                                                                    
     Comprehensive [unit] and most  likely new residents.  I                                                                    
     do  not  support  the further  decline  of  care  which                                                                    
     results   from  higher   needs  residents   not  having                                                                    
     sufficient  staff for  feeding, bathing,  exercise, and                                                                    
     therapeutic activity.  I do  not support increasing the                                                                    
     number  of  residents on  the  stipend  program -  this                                                                    
     would  be an  inevitable outcome  since most  residents                                                                    
     cannot afford the  $5,000 to $6,000 a month.   I do not                                                                    
     support  seeking  VA  federal   monies  for  which  few                                                                    
     veterans will  qualify.  I  do support  seeking federal                                                                    
     monies   by  relicensing   for  skilled   nursing,  and                                                                    
     abolishing  the   residency  requirement.     When  our                                                                    
     Pioneer  Home offered  skilled  nursing,  it was  full.                                                                    
     Our Anchorage  skilled nursing homes have  long waiting                                                                    
     lists.  Filling our  vacancies by restoring the nursing                                                                    
     license would  restore quality care, update  and remove                                                                    
     our  current   health-safety  hazards,  and   bring  in                                                                    
     federal  governments  monies,   which  would  hopefully                                                                    
     abolish the need for the stipend program.                                                                                  
                                                                                                                                
CHAIR CHENAULT announced that Mr. Laddie Shaw, the only                                                                         
remaining witness to testify, could return next Tuesday to                                                                      
testify.  [HB 88 was held.]                                                                                                     

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