Legislature(1999 - 2000)

03/17/1999 01:35 PM Senate HES

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
      SENATE HEALTH, EDUCATION AND SOCIAL SERVICES COMMITTEE                                                                    
                          March 17, 1999                                                                                        
                            1:35 p.m.                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                                 
                                                                                                                                
Senator Mike Miller, Chairman                                                                                                   
Senator Gary Wilken                                                                                                             
                                                                                                                                
MEMBERS ABSENT                                                                                                                  
                                                                                                                                
Senator Pete Kelly, Vice-Chairman                                                                                               
Senator Drue Pearce                                                                                                             
Senator Kim Elton                                                                                                               
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
Overview by Commissioner Karen Perdue, Department of Health and                                                                 
Social Services                                                                                                                 
                                                                                                                                
SENATE BILL NO. 73                                                                                                              
"An Act relating to assisted living homes; and providing for an                                                                 
effective date."                                                                                                                
                                                                                                                                
     -HEARD AND HELD                                                                                                            
                                                                                                                                
PREVIOUS SENATE COMMITTEE ACTION                                                                                                
                                                                                                                                
SB 73 - No previous action to report                                                                                            
                                                                                                                                
WITNESS REGISTER                                                                                                                
                                                                                                                                
Senator Mike Miller                                                                                                             
Alaska State Capitol                                                                                                            
Juneau, AK  99811-1182                                                                                                          
POSITION STATEMENT:  Presented SB 73                                                                                            
                                                                                                                                
Ms. Kay Burrows, Director                                                                                                       
Division of Senior Services                                                                                                     
Department of Health & Social Services                                                                                          
3601 C St. Suite 310                                                                                                            
Anchorage, AK  99503-5984                                                                                                       
POSITION STATEMENT:  Commented on SB 73                                                                                         
                                                                                                                                
Ms. Montafaye Lane                                                                                                              
109 E 5th Avenue                                                                                                                
North Pole, AK  99705                                                                                                           
POSITION STATEMENT:  Commented on SB 73                                                                                         
                                                                                                                                
Ms. Lynn Branson                                                                                                                
PO Box 948                                                                                                                      
Palmer, AK  99645                                                                                                               
POSITION STATEMENT:  Commented on SB 73                                                                                         
                                                                                                                                
Ms. Leslee Orebaugh                                                                                                             
309 E. 24th Avenue                                                                                                              
Anchorage, AK  99503                                                                                                            
POSITION STATEMENT:  Commented on SB 73                                                                                         
                                                                                                                                
Ms. Helen Powell                                                                                                                
1913 Jack St.                                                                                                                   
Fairbanks, AK  99709                                                                                                            
POSITION STATEMENT:  Commented on SB 73                                                                                         
                                                                                                                                
Ms. Debbie Cash                                                                                                                 
3291 Jefferson                                                                                                                  
Fairbanks, AK  99709                                                                                                            
POSITION STATEMENT:  Commented on SB 73                                                                                         
                                                                                                                                
Ms. Frances Purdy                                                                                                               
Long-Term Care Ombudsman                                                                                                        
3601 C St., Ste. 260                                                                                                            
Anchorage, AK  99503-5984                                                                                                       
POSITION STATEMENT:  Commented on SB 73                                                                                         
                                                                                                                                
Mr. Les Westling                                                                                                                
329 D St.                                                                                                                       
Fairbanks, AK  99701                                                                                                            
POSITION STATEMENT:  Commented on SB 73                                                                                         
                                                                                                                                
ACTION NARRATIVE                                                                                                                
                                                                                                                                
TAPE 99-12, SIDE A                                                                                                              
Number 001                                                                                                                      
                                                                                                                                
CHAIRMAN MILLER called the Senate Health, Education and Social                                                                  
Services (HESS) Committee to order at 1:35 p.m. and announced that                                                              
the committee did not have a quorum, with one member having                                                                     
airplane trouble returning to Juneau and another attending the                                                                  
ground-breaking for the new Juneau police station.  He said the                                                                 
committee would hear an overview by Commissioner Perdue, and take                                                               
initial testimony on SB 73 which he sponsored.                                                                                  
                                                                                                                                
MS. KAREN PERDUE, Commissioner of the Department of Health & Social                                                             
Services, highlighted the department's programs for the next year.                                                              
                                                                                                                                
She discussed Child Protection and said the department has had its                                                              
first termination case under the new law in effect since September                                                              
1998.  A new training system has increased the number of calls that                                                             
can be answered.  Challenges include the training and support of                                                                
workers who do this difficult work, and dealing with the heavy                                                                  
caseload.  She urged more funding this session for positions in                                                                 
Fairbanks and Anchorage where the workers carry up to 35 or 40                                                                  
cases and can't adequately do their jobs.  Consequently, public and                                                             
child safety are impacted in two ways - by not getting out on the                                                               
calls to investigate the situations; and not ensuring the child's                                                               
placement in a safe, nurturing foster home or adoptive home.  The                                                               
department is improving the foster care program.                                                                                
                                                                                                                                
Denali Kid Care has been launched with a new, private sector type                                                               
of approach. The insurance card for a parent signing up a child is                                                              
good for six months, cutting repeated paperwork.  The application                                                               
is short, and can be accessed on the Internet and faxed or mailed                                                               
in.  There is no walk-in office.  Since opening on March 1, 3,000                                                               
calls and 900 applications have been taken, and 400 pregnant women                                                              
have been enrolled in the program.                                                                                              
                                                                                                                                
Number 132                                                                                                                      
                                                                                                                                
SENATOR WILKEN asked if the program is on track for projected                                                                   
enrollment.  COMMISSIONER PERDUE replied that it's early to know,                                                               
but the response has been beyond expectation.                                                                                   
                                                                                                                                
COMMISSIONER PERDUE said that valid concerns were expressed in the                                                              
Legislature last year about people dropping insurance to sign on to                                                             
the program.  The department revised its regulations so that a                                                                  
person or business cannot drop their insurance and be qualified for                                                             
this program for one year's waiting period between the time the                                                                 
insurance is lost or dropped and enrollment in this program.  A                                                                 
hardship section is tightly written, for bankruptcy.  The                                                                       
department expects the uninsured to use this program.  The                                                                      
financing is mostly federal, with the state paying about $530 per                                                               
child per year. The sicker children, particularly those with                                                                    
disabilities, are already in the pool.                                                                                          
                                                                                                                                
Immunization rates were second to the last in the nation a couple                                                               
years ago for up to two-year olds. The latest data showed Alaska as                                                             
22nd in the Nation and the department expects to be near the top in                                                             
a couple more years.  Nearly every kid in the state was given a                                                                 
shot during the measles outbreak.                                                                                               
                                                                                                                                
In revamping the API building and its operations, she said API                                                                  
could be much smaller if communities did more crisis service work                                                               
at the hospital level, like Fairbanks Hospital has always done.                                                                 
Senator Kelly's bill on designated evaluation and treatment is very                                                             
important in this regard because it assures the hospitals of a                                                                  
stable source of funding to get into the business of providing                                                                  
emergency psychiatric care.                                                                                                     
                                                                                                                                
The issues of vulnerable adults and children fit into the work of                                                               
the Long-Term Care Task Force.  The department is very supportive                                                               
of several task force recommendations. SB 73 addresses an issue of                                                              
safety by paying providers a decent wage to ensure continuity and                                                               
professionalism, and to attract more people into the business.                                                                  
Regarding developmental disabilities, the department has asked for                                                              
funding this year to raise the wages of care givers.  Because the                                                               
care givers are paid $6 to $8 an hour, the turnover in one program                                                              
is 133%  "which is incredibly distressing on the clients, and not                                                               
good for the quality of care," COMMISSIONER PERDUE said.                                                                        
                                                                                                                                
The youth corrections system is gradually expanding with an                                                                     
addition of 80 beds.  The juvenile facilities have operated at 170%                                                             
over capacity.  At the local Johnson Center dedication, there were                                                              
30 kids in the 8-bed facility.  By next year, if things go as                                                                   
planned, the department will have reduced the overcrowding.                                                                     
                                                                                                                                
Youth courts are very successful in the communities that have                                                                   
invested in them and inexpensive for the department to start up. If                                                             
kids receive consequences as first-time offenders, it makes a big                                                               
difference in the direction they head in life. DHSS is also working                                                             
with tribal organizations to start elder courts, using the same                                                                 
concept as youth courts but with elders making decisions.  The                                                                  
Native community often reports kids running around and something                                                                
needs to be done before the situation escalates to serious law                                                                  
enforcement intervention.                                                                                                       
                                                                                                                                
Regarding welfare reform, Alaska is in the second year of a 5-year                                                              
lifetime limit and seeing a 27% drop in the caseload using the                                                                  
system.  With the help of day care and job training, about 40% of                                                               
the people on welfare are also working.                                                                                         
                                                                                                                                
The department is starting the first Native organization public                                                                 
assistance program with Tanana Chiefs Conference (TCC) in                                                                       
Fairbanks.  It will reduce dependency on welfare more than anything                                                             
the State can do in the villages.  It's a challenge to help people                                                              
work in villages where there are no jobs, through community work                                                                
service or seasonal work.  TCC has other job training and economic                                                              
opportunities to bring to this effort, and it's the largest program                                                             
in the country.                                                                                                                 
                                                                                                                                
Number 267                                                                                                                      
                                                                                                                                
COMMISSIONER PERDUE explained to Senator Wilken that it's located                                                               
in the TCC building, with workers in each of the communities.  She                                                              
asked if the bill authorizing this program will come through HESS,                                                              
and CHAIRMAN MILLER said although he hasn't seen it, it should. She                                                             
said the department needs that legislation to clarify the                                                                       
respective roles in the TCC public assistance program.                                                                          
                                                                                                                                
COMMISSIONER PERDUE mentioned the law that passed last year helping                                                             
people with disabilities join the workforce without losing their                                                                
medical benefits, and said the department needs to do more policy                                                               
work on it. Even relatively disabled people are willing to work as                                                              
long as they don't lose their benefits; loss of their prescriptions                                                             
alone would keep them from working.                                                                                             
                                                                                                                                
The department is helping people make choices on planned                                                                        
pregnancies.  The teen pregnancy rate has declined by 25% over the                                                              
last three or four years- the greatest of any state in the nation.                                                              
If the department can prevent a young girl from having a child if                                                               
she's not ready to support it, COMMISSIONER PERDUE said "it's about                                                             
the best thing the state can do for the future of a young person."                                                              
                                                                                                                                
She said everything seems to relate to substance abuse, with 70-80%                                                             
of the cases in Child Protection going back to it. In the work on                                                               
FAS prevention, pregnancy is a time when a lot of healthy behavior                                                              
can begin because women are highly motivated to make a change for                                                               
their children.                                                                                                                 
                                                                                                                                
COMMISSIONER PERDUE, now into her fifth year as commissioner, said                                                              
it has been a real privilege to be in the job, and there are some                                                               
solid accomplishments that the department can look to.                                                                          
                                                                                                                                
SENATOR WILKEN remarked that she has done a good job in a tough                                                                 
spot. He informed her that Chairman Miller has been supportive of                                                               
the long-term care legislation which is being pushed along and                                                                  
received pretty well.                                                                                                           
                                                                                                                                
COMMISSIONER PERDUE said she's very pleased about that.  She served                                                             
on the task force and it recognized all the work that had gone                                                                  
before it, a phenomenal amount of work in this state.  She said                                                                 
there are "pockets of excellence," and if Alaska can strengthen                                                                 
community care, which fits with the state philosophy, "it will be                                                               
one of the best places in the nation to be a senior or a person                                                                 
with disabilities.  That will be a real accomplishment for                                                                      
everyone."                                                                                                                      
                                                                                                                                
SENATOR WILKEN and CHAIRMAN MILLER thanked the Commissioner.                                                                    
                                                                                                                                
Number 334                                                                                                                      
                                                                                                                                
CHAIRMAN MILLER brought up SB 73, a bill he also introduced last                                                                
year.  He explained that SB 73 would essentially raise the rates                                                                
the state is currently paying to the "Mom and Pop" providers in                                                                 
assisted living homes, from about $30 in Anchorage and $34.50 in                                                                
Fairbanks, to $70 a day.  The Alaska Rate Study Report of December                                                              
1998 put $70 right on target.  CHAIRMAN MILLER said it's kind of                                                                
funny because they considered a lot of numbers and didn't have much                                                             
basis for that number at the time, other than it doubled the rate                                                               
in Fairbanks.                                                                                                                   
                                                                                                                                
CHAIRMAN MILLER related that his father was in a private-pay home                                                               
in North Pole where he observed the level of care.  He said "quite                                                              
frankly, it was a very good level of care for a very inexpensive                                                                
amount."  Charts show that if the rate increased to $100  a day, it                                                             
would be less than half what the state pays in hospitals and                                                                    
facilities around the state like the Denali Center. In his opinion,                                                             
older residents are getting a very good deal for what is being                                                                  
paid, and he's afraid if the rate stays low the state will begin to                                                             
lose providers.  As the population continues to age, Alaska cannot                                                              
lose its providers.  CHAIRMAN MILLER said his goal is to pass the                                                               
rate increase this year, in order to keep the current assisted                                                                  
living providers and attract new providers to the market.                                                                       
Fortunately, fellow legislators are supportive of the concept but                                                               
the problem will be to find it in the budget.  He said he will work                                                             
hard to find it in the budget.  CHAIRMAN MILLER thanked the                                                                     
department for their support of the concept and their help in                                                                   
coming forward with different numbers.                                                                                          
                                                                                                                                
MS. KAY BURROWS, Director of the Division of Senior Services,                                                                   
stated SB 73 would help Alaskans assist vulnerable adults in having                                                             
a place to live with dignity, hope and care.  The Alaskans who care                                                             
for other Alaskans need this living wage.  The rate study was                                                                   
funded by the Mental Health Trust Authority and conducted by the                                                                
Assisted Living Training Institute out of Connecticut.  She cited                                                               
statistics for the FY 98 caseload on which the rate study was                                                                   
based, noting 68% fell under the Mental Health Trust beneficiary,                                                               
and an additional 32% were  either physically disabled or                                                                       
vulnerable adults. Most of the caseload receive general relief                                                                  
funding for one year or less in assisted living.  The rate study                                                                
asked 33 homes to provide detailed private financial information,                                                               
and resulting data showed that if the rate were adjusted just for                                                               
inflation over the 15 years it has not been adjusted, it would be                                                               
$68.  The study looked at the actual financial costs to a home for                                                              
15 people or less, which came to about $73 per day. More severely                                                               
ill people are in the homes and may need an augmented rate of                                                                   
between $3 and $22, mostly for added staffing.   MS. BURROWS                                                                    
concluded the rate study showed a rate of $70 per day is                                                                        
appropriate for the kind of care being offered.                                                                                 
                                                                                                                                
The department will be looking at the assisted living home                                                                      
regulations through the Long-Term Care Task Force, and a number of                                                              
the task force recommendations.  The recommendations include                                                                    
increased training and education requirements for assisted living                                                               
administration and staff, and separate standards for homes caring                                                               
for fifteen people and less, and  homes caring for sixteen people                                                               
and more.                                                                                                                       
                                                                                                                                
MS. BURROWS said she and Dwight Becker, Supervisor for Adult                                                                    
Protective Services, would stay on-line to answer questions.                                                                    
                                                                                                                                
Number 426                                                                                                                      
                                                                                                                                
CHAIRMAN MILLER remarked that Mr. Becker did the fiscal note and                                                                
could explain the numbers.  Mr. Becker responded that he didn't                                                                 
have anything to add to the discussion at this point.                                                                           
                                                                                                                                
CHAIRMAN MILLER said he would begin with the Fairbanks providers                                                                
waiting on-line to testify, and requested that people limit their                                                               
remarks to 5 minutes.  He publicly thanked Ms. Montafaye Lane for                                                               
the care she provided for his father in North Pole when he had                                                                  
Alzheimers.  Chairman Miller said he is acutely aware of the                                                                    
current situation with assisted living homes because of Ms. Lane.                                                               
                                                                                                                                
Number 438                                                                                                                      
                                                                                                                                
MS. MONTAFAYE LANE, Assisted Living Home provider, thanked the                                                                  
division and the committee, and stated the private assisted living                                                              
home administrators work very hard at their own expense to provide                                                              
a high standard of care for vulnerable people at a very reasonable                                                              
cost to the public.  The homes are the grass-roots place that                                                                   
families, agencies and guardians bring people in emergency need for                                                             
nurturing and basic care.  The providers welcome people, often with                                                             
no guarantee of pay, and share their home with no idea of the                                                                   
impact the resident will have on it and the people in it.  The                                                                  
provider accepts people when they arrive, and worries about the pay                                                             
later. MS. LANE admitted that from a practical standpoint, adopting                                                             
that philosophy is probably a mistake but it is the nature of their                                                             
business to care for the vulnerable ones.                                                                                       
                                                                                                                                
She said that the current stipend is not only unrealistically low,                                                              
it often takes three months to receive the reimbursement covering                                                               
someone who couldn't make it through the door of a larger, more                                                                 
profitable facility.  The homes cannot continue to adequately care                                                              
for these people at $1.44 an hour with the minimum wage at $5.62.                                                               
Qualified helpers demand at least $10 per hour, a wage they can get                                                             
at a facility taking in the $3000 per month resident.                                                                           
                                                                                                                                
If the bill does not pass, MS. LANE said the providers have no hope                                                             
of financial relief and many will have to look to their own                                                                     
survival at a great emotional cost to their residents, and a great                                                              
financial cost to the state. She urged doing away with the co-pay                                                               
for elders, and raising the personal needs spending of the                                                                      
residents to $100-150 per month because many of them smoke                                                                      
cigarettes.                                                                                                                     
                                                                                                                                
Number 510                                                                                                                      
                                                                                                                                
MS. LYNN BRANSON, Consumer and Assisted Living Home professional,                                                               
Mat-Su, asked for provisions to monitor the assisted living homes                                                               
and stricter hiring practices for employees working in the homes.                                                               
She was concerned that the system is set up for abuse with little                                                               
monitoring of some of the homes.                                                                                                
                                                                                                                                
MS. LESLEE OREBAUGH, assistant at Parkside in Anchorage, discussed                                                              
the added expenses the assisted living homes have incurred since                                                                
the new licensing regulations went into effect.  Now there is a                                                                 
per-bed fee for licensing, new insurance policies required for                                                                  
professional liability, and new fire and safety equipment expenses.                                                             
She asked members to take these added expenses into consideration                                                               
when raising the rate to $70 per day.                                                                                           
                                                                                                                                
MS. HELEN POWELL, owner of an assisted living home in Fairbanks and                                                             
treasurer of Alaska Care Givers Association, said she agreed with                                                               
Montafaye Lane's comments.  She suggested taking $10 from the                                                                   
Permanent Fund Dividend.  She said if the homes don't get a higher                                                              
rate, she could no longer accept general relief clients in her                                                                  
home.  "At $70 dollars a day, we're still the best quality of care                                                              
and the cheapest rent you'll ever get."                                                                                         
                                                                                                                                
MS. DEBBIE CASH, Fairbanks provider, discussed fuel cost increases                                                              
over 3 years, and costs for insurance.  She received $99 per day                                                                
for one client who was paralyzed and totally bedridden, while the                                                               
same person at Denali Center would have cost $320 per day. MS. CASH                                                             
said she could no longer keep her doors open at the $34.50 per day                                                              
rate.  She discussed the wear and tear on the home, with nurses,                                                                
caseworkers, family and friends coming in and out.                                                                              
                                                                                                                                
MS. FRANCES PURDY, Long-Term Care Ombudsman, supported the comments                                                             
of the Division of Senior Services, and the providers.  The                                                                     
potential rate increase would provide clients with the services                                                                 
they need when they first enter an assisted living home, or while                                                               
waiting for Medicaid waiver programs to be approved.  She echoed                                                                
the fear that many good providers will leave the business because                                                               
they are constantly overextending themselves to provide services                                                                
they're not being paid for.  The funds are desperately needed to                                                                
keep the continuum of care for all residents in long-term care                                                                  
services.                                                                                                                       
                                                                                                                                
TAPE 99-12, SIDE B                                                                                                              
Number 595                                                                                                                      
                                                                                                                                
MR. LES WESTLING, Assisted Living Home provider in Fairbanks,                                                                   
thanked Ms. Purdy for her testimony and urged passage of the rate                                                               
increase this session.  He recommended building teams of community                                                              
agencies and assisted living homes around each elder to solve the                                                               
difficulties in each town.  He said training is very necessary to                                                               
raise the standards of administrators, and workers like CNAs                                                                    
because assisted living homes are a more homelike environment than                                                              
nursing homes or hospitals.  A worker may know how to change a                                                                  
bedpan but that doesn't mean he will know how to sit down and                                                                   
communicate, play a game of cards, or work on memory skills and                                                                 
other ways to increase awareness.                                                                                               
                                                                                                                                
On the issue of monitoring abuse, MR. WESTLING said he can't afford                                                             
a secretary and his paperwork for 10 staff "runs him over"                                                                      
sometimes because he's keeping on top of his staff to ensure there                                                              
is no abuse. He monitors if workers are not dealing with someone                                                                
properly due to lack of training, and he urged funding for                                                                      
training.                                                                                                                       
                                                                                                                                
When he started the home, Mr. Westling would take in clients on no                                                              
notice and without funding and he almost put himself into                                                                       
bankruptcy doing that. Problem clients need placement  in the                                                                   
assisted living homes until their funding sources come together.                                                                
Increasing the daily rate should provide the leeway to make that                                                                
possible again.  He also urged increasing the personal spending of                                                              
the clients to more than $75 per month, which provides only about                                                               
two cartons of cigarettes to smokers.                                                                                           
                                                                                                                                
Number 545                                                                                                                      
                                                                                                                                
CHAIRMAN MILLER  said there still wasn't a quorum but he intends to                                                             
work on SB 73 and bring it back before the committee next week.                                                                 
There is a lot of support in the Legislature for this measure but                                                               
he questioned how to fund it.                                                                                                   
                                                                                                                                
SENATOR WILKEN questioned if one approach might be to "take this a                                                              
bite at a time."                                                                                                                
                                                                                                                                
CHAIRMAN MILLER said that's essentially what he's been looking at,                                                              
but he hasn't run it by the service providers.  The concept would                                                               
be to "ratchet it up to $50 the first year, to $75 the second year,                                                             
and up to $100 the third and final year."  It would be smaller                                                                  
"bites,"  but in the long run the providers would actually be                                                                   
ahead.  Mr. Becker in Anchorage would do the number crunching for                                                               
the committee.  It would start the rate increase in the right                                                                   
direction.                                                                                                                      
                                                                                                                                
SENATOR WILKEN said he agreed, and he hoped to get it started this                                                              
year.                                                                                                                           
                                                                                                                                
CHAIRMAN MILLER concurred that it must get started this year.  With                                                             
no further business before the committee, it adjourned at 2:30 p.m.                                                             
                                                                                                                                
                                                                                                                                

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