04/06/2000 08:09 AM House STA

SB 247-VETERANS'ELIGIBILITY FOR LONGEVITY BONUS                                                                               
                                                                                                                                
Number 1928                                                                                                                     
                                                                                                                                
CHAIR JAMES announced the next order  of business is CS FOR SENATE                                                              
BILL  NO. 247(FIN),  "An Act  relating to  eligibility of  certain                                                              
veterans  for  longevity  bonus payments;  and  providing  for  an                                                              
effective date."                                                                                                                
                                                                                                                                
MARIE MARKS, Legislative Secretary  to Senator Loren Leman, Alaska                                                              
State Legislature,  presented  the sponsor  statement for  SB 247.                                                              
She said that  during the interim, Senator Leman  was contacted by                                                              
several  constituents regarding  veterans  entering nursing  homes                                                              
and  subsequently  losing  their longevity  bonus  checks  because                                                              
their stay  in the nursing  home was to  be paid for  by veterans'                                                              
benefits.   She  explained that  the crux  of the  problem is  the                                                              
Division of Longevity  Bonus' interpretation of  the definition of                                                              
"private" versus "funding."   She noted that under  current law an                                                              
individual who  enters a  nursing home and  pays for  his/her care                                                              
does not lose  his/her longevity bonus check.   She commented that                                                              
veterans' benefits  were included in the interpretation  of a non-                                                              
private source  since anything  that is not  paid for  directly by                                                              
the individual is considered a non-private source.                                                                              
                                                                                                                                
MS.  MARKS  mentioned that  SB  247  restores the  eligibility  to                                                              
receive  longevity  bonus payments  of  certain  veterans who  are                                                              
being cared  for in nursing homes.   She indicated  that veterans'                                                              
benefits are federal benefits earned  by those who have served our                                                              
country in the armed forces.  It  is not fair to include veterans'                                                              
benefits in the  same category as needs-based  state benefits such                                                              
as  Medicaid, the  receipt of  which disqualifies  a nursing  home                                                              
patient from receiving  longevity bonus payments.   She emphasized                                                              
that SB  247 is not  retroactive.  She  remarked that  persons who                                                              
had been disqualified  solely because they are  paying for nursing                                                              
care with veterans' benefits may  re-apply beginning July 1, 2000;                                                              
then they would receive their longevity  bonus check from the time                                                              
of  qualification until  such time  as they  are disqualified  for                                                              
other reasons.   She added that between Legislative  Audit and the                                                              
Department  of  Administration, it  is  estimated  that about  six                                                              
veterans will be affected by SB 247.   She acknowledged that there                                                              
is  a  fiscal   note  of  $12,000  attached  to   SB  247  as  the                                                              
department's  best guess of  how much this  change to  the program                                                              
would cost, but it could be less.                                                                                               
Number 2060                                                                                                                     
                                                                                                                                
REPRESENTATIVE  HUDSON asked  if there was  a correlation  between                                                              
this  proposal   and  the  Alaska  Longevity  Bonus   (ALB)  "hold                                                              
harmless" proposal.                                                                                                             
                                                                                                                                
NANCY  WELLER,  Division  of  Medical  Assistance,  Department  of                                                              
Health & Social Services, replied  that the ALB "hold harmless" is                                                              
paid  through   the  Medicaid  program   when  a   person  becomes                                                              
ineligible  due  to too  high  of  an income;  veterans'  benefits                                                              
actually has nothing to do with the ALB "hold harmless."                                                                        
                                                                                                                                
MS. MARKS said that  as soon as a veteran receives  even one penny                                                              
of other benefits, Medicaid or Medicare,  the veteran is no longer                                                              
eligible for longevity bonus.                                                                                                   
                                                                                                                                
Number 2129                                                                                                                     
                                                                                                                                
REPRESENTATIVE OGAN  asked Ms. Marks to explain  Title 47, Section                                                              
2.                                                                                                                              
                                                                                                                                
MS.  WELLER replied  that Section  2  applies to  people who  were                                                              
bounced  off the  longevity bonus  program  because they  received                                                              
veterans' benefits and  would now be able to reapply  and get back                                                              
into  the  program.   Section  2  states  that  a person  who  was                                                              
receiving  veterans' benefits,  then  entered a  nursing home  and                                                              
subsequently  was disqualified from  receiving a longevity  bonus,                                                              
which the  person had previously  been receiving, can  reapply for                                                              
the  longevity  bonus.   She  said  that longevity  bonus  program                                                              
benefits are $250 and have been pared  down to $100 so with SB 247                                                              
the division  is just  trying to  reinstate what  the veteran  had                                                              
before  he/she had been  denied the  longevity  bonus.  She  noted                                                              
that in Section (b) a person who  applies will be eligible for the                                                              
amount that  the person would  have received had  he/she qualified                                                              
when  he/she first  applied for  longevity bonus.   She  explained                                                              
that all longevity bonus applications  are filed and kept with the                                                              
division.   She commented  that if a  veteran living in  a nursing                                                              
home had  never received  a longevity bonus  he/she can  apply now                                                              
and  will receive  the amount  that he/she  would have  originally                                                              
received had the application been filed.                                                                                        
                                                                                                                                
LADDIE  SHAW,   Coordinator,  Veterans'  Affairs,   Department  of                                                              
Military and Veterans' Affairs, testified  via teleconference from                                                              
Anchorage in support of SB 247.                                                                                                 
                                                                                                                                
Number 2330                                                                                                                     
                                                                                                                                
CHAIR  JAMES  stated  that  SB  247  is  straightforward  and  she                                                              
apologized for leaving  these veterans out of the  loop.  She said                                                              
she hoped that the damages had not been too severe.                                                                             
                                                                                                                                
Number 2344                                                                                                                     
                                                                                                                                
REPRESENTATIVE WHITAKER  made a motion  to move CSSB  247(FIN) out                                                              
of  committee  with  the  attached   fiscal  note  and  individual                                                              
recommendations.   There being no  objection, CSSB  247(FIN) moved                                                              
from the House State Affairs Standing Committee.