Legislature(1997 - 1998)

03/09/1998 09:06 AM Senate HES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
              SB 321 - ASSISTED LIVING FACILITIES                              
                                                                               
CHAIRMAN WILKEN announced a committee substitute had been prepared             
for SB 321.                                                                    
                                                                               
SENATOR WARD moved to adopt CSSB 321 (version F) as the working                
document of the committee.  There being no objection, the motion               
carried.                                                                       
                                                                               
SENATOR MIKE MILLER, District Q, discussed the reason he introduced            
SB 321.  His father was placed in an assisted living care facility             
in North Pole as a private pay client.  Through the course of his              
father's stay, the family saw the type of loving care given to his             
father until he passed away and to the other clients.  One other               
client was a private pay; the other clients were paid for by the               
state for which the caregiver received $34.50 per day.  Senator                
Miller cautioned that if the current amount paid to assisted living            
caregivers is not increased, more and more caregivers will quit                
providing services because the care provided in these homes is very            
demanding upon the caregivers.  If fewer caregivers are available,             
families will have to send elderly relatives to places like Denali             
Center, which costs the state a couple of hundred dollars per day.             
Assisted living facilities are a less expensive alternative, and               
they provide a different type of environment which some people                 
prefer.                                                                        
                                                                               
SENATOR MILLER maintained he was not sure how the increased cost               
associated with SB 321 will be paid, but he felt dialogue on long              
term care issues must begin.  He concluded by saying he cannot                 
speak highly enough about the caregivers who provide this service              
and the type of care his father received and he believes increasing            
the amount of funds they receive is the right thing to do.                     
                                                                               
CHAIRMAN WILKEN questioned how the $70 amount was calculated.                  
                                                                               
SENATOR MILLER replied his staff worked with a number of assisted              
living caregivers to come up with that number. Since the last                  
increase in 1983, many expenses have increased, such as insurance              
rates.                                                                         
                                                                               
CHAIRMAN WILKEN asked if assisted living homes require licensure               
and if they take more than one client at a time.                               
                                                                               
SENATOR MILLER answered this particular home was licensed by the               
State of Alaska to house up to five individuals at a time.  He                 
added that private pay clients go to the top of the waiting list               
because they pay more.  His father's care cost $100 per day, but               
had he been in an institution, the cost would have been much                   
higher.  He noted a number of the individuals who live in assisted             
living facilities do so until they pass on.                                    
                                                                               
CHAIRMAN WILKEN pointed out that Mr. Kohn of the Pioneer Home                  
estimated there will be 30,000 s and enter an educational                      
institutional setting eniors in the State of Alaska in the year                
2000 or 2005 while only be 600 Pioneer Home beds will be available.            
                                                                               
Number 552                                                                     
                                                                               
JOHN PIERCE, Vice President of Senior Quality Care Incorporated,               
which owns and operates an eight-bed facility named "Summer Shade,"            
made the following remarks.  One cannot even find a good motel room            
in Fairbanks for $34.50, yet assisted living facilities offer 24               
hours per day of care for that amount.  In his facility everyone is            
licensed as at least a CNA.  His clients need various levels of                
care; some need borderline nursing home services; some are taken in            
emergency situations.  The paperwork submitted for clients who                 
qualify for state monies normally takes 60 to 90 days to process.              
He asked that the amount of payment be dependent upon the level of             
care needed.   Mr. Pierce thought assisted living facilities are               
competing unfairly with Pioneers Homes because Pioneers Homes do               
not accept clients for $34.50 per day.  After he does the paperwork            
for some of his clients, and their health improves, they are often             
transferred to a Pioneer Home.                                                 
                                                                               
TAPE 98-22, SIDE B                                                             
Number 580                                                                     
                                                                               
DWIGHT BECKER, Program Coordinator with the Division of Senior                 
Services, stated he supervises programs of adult protection and                
assisted living facility licensing, and he administers the general             
relief program statewide.  He maintained assisted living providers             
are a very important part of the senior services network.  They do             
not only provide services for seniors, they also provide services              
to anyone 18 years of age and over who is a vulnerable adult with              
a mental or physical impairment.  He believes providers are long               
overdue for some type of increase.  The clientele they are now                 
serving are becoming more difficult to provide for.  More clients              
have mental health problems, alcohol and substance abuse related               
problems, and are violent.  Many clients have multiple health care             
needs requiring a whole array of services.  In Alaska the assisted             
living providers market rate for taking care of such clients runs              
about $2500 to $3000 per month.  The general relief program pays a             
base rate of $30 in Anchorage; a cost of living differential is                
applied to other areas around the state.  He supports some type of             
increase.  Everyday, his agency receives calls from hospital                   
discharge planners, police departments, and others looking for                 
facilities in which to place people who are at risk of becoming                
homeless and/or are at risk of abuse, neglect, or self-neglect.                
Alaska has almost 100 assisted living homes statewide, and rarely              
do they refuse to take a client, even at the low rates.                        
                                                                               
Number 550                                                                     
                                                                               
ROSE HEYANO, the social services director for the Bristol Bay                  
Native Association (BBNA), informed committee members that BBNA is             
currently assisting in the development of a ten bed facility to be             
located in Dillingham.  Funding for that facility is contained in              
the senior citizen housing development fund in the Governor's                  
capital budget request.  BBNA is relying on medicaid choice funds              
and the daily base rate paid by DHSS for adults in residential care            
for this operation.  This funding is not adequate to make the                  
facility self sufficient.  BBNA needs at least $1400 per month per             
client to be self-supporting.  The goal of the region is to develop            
a ten-bed facility in Dillingham and then smaller facilities in                
Togiak and New Stuyahok.  BBNA found that in 1996, 16 elders left              
the region, yet everyone of them could have been placed in assisted            
facilities if the space was available.  Local residents want to                
keep their elderly relatives close by.  BBNA estimates that nine               
out of 10 beds will be filled by low-income people on fixed                    
incomes.  The operational costs in rural Alaska are much higher                
than in urban areas.  BBNA determined from a survey it conducted               
last year there are 80 elders in the region.  It currently has a               
home care program that has placed over 50 personal care attendants             
in over 70 elders' homes in the region.  An assisted living                    
facility will provide one more level of care for elders who need to            
make that transition.  It will be less expensive in the long run to            
keep elders closer to home.  MS. HEYANO encouraged committee                   
members to help BBNA in its endeavor to develop more assisted                  
living facilities in its region.                                               
                                                                               
CATHY WESTLING, representing Downtown Care Assisted Living, and the            
secretary of the Alaska Caregivers' Association, stated that                   
assisted living is a model of care in the State of Alaska.                     
Essentially, foster care turned into assisted living two to three              
years ago.  Caregivers are a self-governing body of independent                
business owners who are required to be licensed, monitored and                 
accountable.  The goal of assisted living is to deinstitutionalize             
care as long as possible; assisted living caregivers need                      
recognition and support.  These business owners are required to pay            
insurance and workers' compensation, yet the base rate has not                 
changed since 1983.   Downtown Care Assisted Living is a ten-bed               
facility that employs seven employees: often native employees,                 
employees off of welfare roles, and employees who are related to               
clients.  It has housed many displaced elders who come from rural              
areas to Anchorage for medical care.  Ms. Westling indicated that              
many of her clients have alcohol and substance abuse problems,                 
and/or have been abused and exploited.  These clients need help                
learning how to deal with relationships.  She gets involved in                 
restraining orders, guardianship issues, probate court, and getting            
people into counseling. Clients in assisted living facilities need             
care 24 hours per day.  With a higher base rate for clients, she               
would like to hire more escorts to get clients active in the                   
community.  She added the State of Washington pays $55 per day as              
its base rate.                                                                 
                                                                               
MS. WESTLING indicated she has many clients with mental health and             
developmental disability problems.  These clients can be very                  
disruptive and sometimes it takes up to one year to receive funding            
for those clients.  She believes the homeless population with                  
mental illness or developmental disabilities will suffer the most              
if the rates are not raised.                                                   
                                                                               
MONTA LANE, owner of a five-bed facility in North Pole, and                    
President of Alaska Caregivers' Association, thanked Senator Miller            
for his efforts and made the following statements.  She started her            
business in 1991, which was known as adult foster care at that                 
time.  The rate of pay in 1991 for general relief clients was                  
$30.91; the amount increased by $2.60 in 1992.  Nursing homes are              
not designed to take care of people who have reached a point to                
where they need to be in an assisted living type of setting.  As               
clients get older, they usually deteriorate and often die in the               
assisted living facility.  Clients become part of a family, and it             
is difficult to lose them.  Regarding the question about the                   
increase to $70 per day, Ms. Lane said she originally requested                
$100 per day with a sliding fee for people who require more care.              
She has detoxed clients.  The Legislature appropriated $21 million             
for alcohol and substance abuse problems, yet none of that money is            
available to assisted living homes or the adult protection agency.             
Almost every assisted living home in the Interior has alcohol                  
related dementia seniors in their homes.  Ms. Lane emphasized                  
assisted living facility owners work 24 hours per day yet they get             
no overtime pay nor do they have insurance, retirement funds or                
vacations.  She noted she had a client for seven years who recently            
passed away.  After making several attempts to find his family over            
the years, she located his children in Portland, Oregon, who                   
thought he had passed away.  This client did pass away two weeks               
later after speaking to his family for the first time in 12 years.             
She repeated her request for a base rate of $100 per day with a                
sliding fee scale for clients with chronic alcohol or mental                   
illness problems.                                                              
                                                                               
Number 374                                                                     
                                                                               
DEBBIE CASK, owner of Debbie's Fireside Homes, stated she is having            
a difficult time keeping employees because she cannot compete with             
the wages offered by nursing homes.  She noted assisted living                 
facilities owners are receiving $1.44 per hour per client which is             
barely enough to buy food.  To keep employees, she needs to offer              
health insurance and competitive wages.  She recently hired three              
people from the welfare roll but had to let them go because she                
could not afford to keep them.  She said many clients need to be               
hand fed, changed daily, and turned every few hours, among other               
things.                                                                        
                                                                               
CHAIRMAN WILKEN clarified that language on lines 9-12 allows the               
department, by regulation, to provide for a daily rate higher than             
$70 if the additional care justifies the additional reimbursements.            
                                                                               
SELMA ROBINSON, owner of Robinson Care, stated at present she has              
a limited number of clients, and is concerned that the $34.50 is               
not sufficient to take care of a person in her home.  She has part-            
time help but can afford no more.                                              
                                                                               
HELEN POWELL, owner of a five-bed assisted living home, stated it              
is very difficult for her to keep her business open if she is not              
full all of the time.  She serves three meals and snacks each day,             
hires employees, pays higher utility bills, and provides an array              
of services for her elderly clients.                                           
                                                                               
Number 313                                                                     
                                                                               
MS. B JARVI, a professional guardian, stated the minimum wage is               
over $5 per hour, yet caregivers only receive $1.44 per hour which             
is an injustice.  Often she must plead with caregivers on short                
notice to take clients because they are in intolerable living                  
situations.  The assisted living facility caregivers find room for             
these clients every time and sometimes without knowing if they will            
get paid at all.  Pioneers Homes and similar facilities will not               
take people on short notice and are often full.  Ms. Jarvi said she            
could not even put a client in a hotel room for $34.50 per night,              
let alone hire someone to watch the client.  She noted when clients            
who are in the Denali Center for recuperative purposes are able to             
leave, she moves them to an assisted living facility as quickly as             
possible because the clients do better in a home environment.  They            
are treated with dignity and are included in family life.   She                
stated her support for a substantial raise to caregivers.                      
                                                                               
SHARON KENAMON, an assisted living facility owner, stated she has              
been in business for 1+ years and is barely paying her bills.  She             
is unable to provide any transportation to clients other than for              
medical visits and cannot afford to provide any activities.  Two               
clients she housed were recently released and she never received               
payment for them.  Caregivers need an increase in the pay rate in              
order to be able to provide activities for their clients.                      
                                                                               
JUDITH TOWNSEND, owner of Center of Care, stated she opened her                
facility one year ago after working as an RN in a hospital for six             
years.  She believes many people have a bad feeling about nursing              
homes, and many elderly want to stay in their own homes, so                    
assisted care facilities are the next best thing because clients               
live in a family atmosphere.  Clients often need assistance with               
daily care, but they do not have the money to pay for such care.               
The base rate of $34.50 does not cover the cost of providing for               
these clients.  Direct costs alone can run $170 per day.  She                  
believes a base rate of $100 per day would be much more appropriate            
to ensure clients receive adequate care from trained caregivers.               
                                                                               
CHAIRMAN WILKEN thanked all participants for testifying today and              
stated that although the money is an important issue, caregivers               
are motivated by more.  He thanked them for their services to a                
needy group of people.                                                         
                                                                               
DERRILL JOHNSON, Division of Mental Health and Developmental                   
Disabilities in the Department of Health and Social Services,                  
stated assisted living facilities are probably one of the most                 
important new industries in the state and are necessary as part of             
the state's long term care plan.  DHSS recognizes that the                     
compensation system needs to be revised, whether that be the fee               
structure or in the compensation methodology which determines the              
true cost of care.  DHSS would like to see the fee structure based             
on an individual's needs rather than a fixed rate.  DHSS also                  
believes a public hearing process should be held before determining            
the rate because Alaska has a variety of vendors with different                
needs.                                                                         
                                                                               
MR. JOHNSON stated the assisted living home industry is relatively             
new and is a combination of the adult foster care program and the              
adult residential care program. DHSS has been aware of problems                
that have occurred with the combination of those two programs and              
of the low rate, but it has not had the resources to adjust the                
fees to a $70 minimum.                                                         
                                                                               
CHAIRMAN WILKEN asked if a sliding fee scale based on need is used,            
whether a method to grade the needs will have to be created at an              
additional expense to the state.                                               
                                                                               
MR. JOHNSON replied that individualized funding is used with                   
developmentally disabled clients.  The cost of care is negotiated              
based on a care coordinator's plan and with an independent third               
party who works with the family of the consumer.  The necessary                
services are costed out with a vendor.  Mr. Johnson thought using              
a tiered fee schedule which allows flexibility to individualize                
each plan would work best.  In some of the outlying areas where                
assisted living facilities need further development, staff and                 
expertise may not be available to determine individually negotiated            
costs.  If a tiered system with parameters was available to use as             
a baseline to explain what costs are associated with what needs,               
caregivers could more easily determine realistic costs.  Mr.                   
Johnson said the need for quality care is the driving force behind             
assisted living facilities therefore comparable wages need to be               
paid for that care.                                                            
                                                                               
CHAIRMAN WILKEN gave the gavel to Senator Leman and excused himself            
to attend another hearing.                                                     
                                                                               
SENATOR WARD referred to Section 7 of the committee substitute and             
said he understood that section to mean that $70 is established as             
the base rate but that rate could be increased if a client requires            
extra care.  Senator Ward commented he was pleased to see this                 
legislation because this is what he came to Juneau to do, not to               
spend $120 per day to house prisoners.                                         
                                                                               
SHARON CLARK, legislative aide to Senator Mike Miller, sponsor of              
SB 321, informed committee members the two lists in committee                  
members' packets were provided by DHSS, and DHSS staff has been                
very helpful in drafting this bill.  She pointed out there are 138             
assisted living homes throughout the state.  The Alaska Caregivers'            
Association resolution contains a breakdown of the amount provided             
on a daily basis to each caregiver, compared to what each one                  
should receive.  Committee packets also contain a resolution from              
the Alaska Commission on Aging.                                                
                                                                               
MS. CLARK commented this summer she spent a lot of time speaking               
with people in rural areas about this approach.  They were excited             
about creating assisted living homes in their areas so their                   
elderly do not have to leave.  She noted many elderly are sent to              
Denali Center or other facilities in urban areas and can no longer             
see family members because the cost of travel is prohibitive.                  
                                                                               
ALISON ELGEE, Deputy Commissioner of the Department of                         
Administration, which administers the senior services programs,                
gave the following testimony.  The base rate being discussed is the            
rate for general relief funds.  Once an individual qualifies for a             
medicaid waiver,  which requires the individual to need a nursing              
home level of care, the department has the ability  to negotiate               
the amount of compensation paid to the assisted living home                    
facility.  She cautioned there will always be individuals in a                 
general relief category who do not meet the nursing home level of              
care but are incapable of living independently.  Many come through             
adult protective services and need emergency placement. The                    
department has discovered that people who move into an assisted                
living environment before their needs get to a nursing home level              
of care can generally be maintained in a less expensive environment            
for much longer.  The department's primary concern with SB 321 is              
the fiscal note because the cost of paying the base rate of $70 per            
day for existing clientele alone will be substantial.                          
                                                                               
VICE CHAIR LEMAN stated he shares Ms. Elgee's concern about how to             
address the costs, but he also shares Senator Ward's concerns.                 
                                                                               
TAPE 98-23, SIDE A                                                             
                                                                               
MONTA LANE repeated that caregivers need to receive a minimum of               
$70 per day for general relief clients in their homes, and more for            
clients who need special services.  She informed committee members             
it sometimes takes five months to get clients on a medicaid choice             
waiver.  During that time the caregiver must provide for the client            
out of pocket and is then retroactively reimbursed only to the date            
the plan of care was signed which may have occurred two months                 
after the client arrived at the home.  She added that non-profit               
organizations can get grants to build assisted living care                     
facilities but private owners get no assistance to maintain their              
homes.                                                                         
                                                                               
SENATOR WARD commented he worked on similar legislation in 1982 and            
that he will have no trouble finding enough money to fund SB 321.              
He moved to pass CSSB 321 out of committee with individual                     
recommendations and its accompanying fiscal note.  There being no              
objection, the motion carried.                                                 

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