Legislature(1999 - 2000)
03/02/2000 03:37 PM Senate STA
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SB 247-VETERANS'ELIGIBILITY FOR LONGEVITY BONUS
MS. ANNETTE KREITZER, legislative staff to Senator Leman, presented
SB 247. A person who resides in a nursing home can receive the
longevity bonus only if "the cost of care of the person at the
nursing home is paid for entirely from private sources." Persons
living in nursing homes who receive veterans' benefits are denied
longevity bonus payments. Veterans' benefits are federal benefits
earned by those who have served this country in the armed forces.
SB 247 amends the eligibility criteria for nursing home patients,
to allow the cost of care to be paid for from private sources,
veterans' benefits, or a combination of private sources and
veterans' benefits. Those veterans disqualified under the existing
law will be permitted to reapply for qualification for bonus
payments during a six-month window open from July 1, 2000 to
January 1, 2001. Eligible veterans who reapply will receive the
monthly longevity bonus that they would have received had they not
been disqualified. The longevity bonus payments are prospective
from the time of re-qualification.
A proposed committee substitute has been drafted to ensure SB 247
was drafted narrowly.
SENATOR WILKEN moved CS for SB 247 (1-LS1363\G). Without objection
CS for SB 247 (1-LS1363\G) was adopted.
CHAIRMAN WARD asked how the CS differs from the original bill.
MS. KREITZER stated it clarifies that a person who moves into a
nursing home can pay out of private funds and adds veterans'
benefits. Section 2 (a) speaks to the individuals who were
receiving a longevity bonus and then disqualified because they
began receiving veterans' benefits when they went into a nursing
home. Section 2 (b) deals with persons who are veterans and
applied, but did not qualify.
SENATOR PHILLIPS asked if Social Security benefits disqualify
people for a longevity bonus also.
Number 726
MS. KREITZER stated that Social Security benefits are not the issue
they focused on.
SENATOR PHILLIPS asked what the difference was between receiving
veterans' benefits and Social Security benefits when someone is
applying for a longevity bonus, and whether Social Security
benefits are considered federal money or private source funding.
MS. KREITZER stated that she focused on the veterans' aspect of
disqualification. She was not certain how Social Security benefits
are considered.
SENATOR GREEN stated that people 65 and older who choose to use
insurance have no choice but to fall under Medicare, even though
they are still paying for that coverage.
Number 994
MR. EMORY WHEELER stated he is a veteran and supports 247. SB 247
has little fiscal impact and would greatly help the six individuals
who are disqualified from receiving longevity benefits.
SENATOR PHILLIPS asked if veterans' benefits and Social Security
benefits were considered public benefits or private benefits.
MR. LADDIE SHAW, Special Assistant to the Adjutant General of the
Department of Military & Veterans Affairs, stated compensation
would be made to a person who was wounded during duty and that
would be considered a private source.
SENATOR WILKEN said Social Security should be a private source
because the government holds that money in trust until the time a
beneficiary draws off of the account.
MR. JIM KOHN, Director of the Division of Alaska Longevity
Programs, stated there is confusion between income and payment.
Income includes Social Security and veterans' benefits; those are
private payments. Payments or benefits come from the state or
federal government in the form of Medicare and Medicaid.
Disqualification was placed on the longevity bonus when a recipient
of the bonus entered a skilled nursing facility. They were unable
to receive Medicaid benefits because the longevity bonus
disqualified them on an income basis. The federal government ruled
a recipient of the longevity bonus could not give up that payment
or disqualify themselves from the payment to qualify for Medicaid.
The legislature passed a bill to disqualify people for longevity
bonuses who were in skilled nursing facilities so they would
qualify for Medicaid.
In 1992, a change was made in statute to accommodate people who
entered a skilled nursing facility using their own funds. While
people are using their own funds, the legislature said that person
should not be disqualified from the longevity bonus. If the bill
is paid with other benefits, rather than personal funds, that
person is now disqualified from receiving the longevity bonus.
SB 247 extends the ability of recipients to continue with their
payment to a skilled nursing facility if the payment is provided by
veterans' benefits or a combination of veterans' benefits and
private funds.
MR. KOHN said the fiscal note covers one year of bonuses for those
disqualified based on veterans' benefits being used for care in a
skilled nursing facility. The total fiscal impact would total
approximately $12,000 a year.
Number 1514
SENATOR GREEN asked whether people are disqualified when they apply
for Medicaid only.
MR. KOHN stated no.
SENATOR GREEN asked who qualifies for Medicaid and Medicare.
MR. KOHN stated people who qualify for Medicare need to be between
the ages of 62 and 65. People who qualify for Medicaid can be any
age range, it varies with their income criteria. The longevity
bonus recipients are people who are 69 and older.
SENATOR GREEN asked if General Relief Medical Assistance would
apply to people over age 69.
MR. KOHN replied under current statute persons on General Relief
would be ineligible for longevity bonuses.
MS. KREITZER stated the only records available from the hearing in
1992 are on tape. No discussion of veterans' benefits were
included in those records, it only referred to Medicaid, Medicare,
and other sources.
SENATOR PHILLIPS stated Medicare and Medicaid costs for veterans
pose concerns about discrimination.
SENATOR GREEN asked what was mentioned on the tapes that is
comparable to veterans' benefits.
MS. KREITZER stated Medicaid and Medicare. General Relief was not
mentioned.
Number 2116
SENATOR ELTON stated the veterans' benefits are earned in a
different way than Social Security.
SENATOR GREEN stated Medicare can barely be avoided when you are 69
and older.
CHAIRMAN WARD stated SB 247 would be held in committee.
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