SB 154-HOME CARE EMPLOYMENT STANDARDS ADV BOARD  2:42:54 PM CHAIR BJORKMAN reconvened the meeting and announced the consideration of SPONSOR SUBSTITUTE FOR SENATE BILL NO. 154 "An Act establishing the Home Care Employment Standards Advisory Board; relating to payment for personal care services; and providing for an effective date." 2:43:22 PM SENATOR YUNDT speaking as sponsor of SB 154 he introduced the bill: [Original punctuation provided.] An Act establishing the Home Care Employment Standards Advisory Board; relating to payment for personal care services; and providing for an effective date." Seniors are the fastest growing demographic in the state of Alaska1 and are living longer lives.2 The state's 85+ population is expected to increase by 500 percent between 2022 and 2050, of which, 1/3 will experience Alzheimer's and Related Dementia. The Alaska Department of Labor and Workforce Development predicts home care, a part of Alaska's continuum of care services for seniors and people with disabilities, to be one of the fastest growing and most in demand occupations in the state. Alaska faces an acute shortage of direct care workers, particularly outside of population centers. The potential provider workforce demographic, those age 18 to 64, is in decline. Furthermore, low pay and lack of benefits force many caregivers out of the profession and make recruitment and retention increasingly more difficult for agencies providing in- home care services. 2:44:58 PM SENATOR YUNDT continued: We need to create strong and long-lasting home care infrastructure in Alaska which will expand access to quality, affordable home and community-based care for seniors and people with disabilities, keep people in their homes and out of costly facilities, and bolster the creation of jobs. We also need to ensure that Medicaid funding for personal care services is wisely spent, with an adequate portion of the rate going to pay and benefits for direct care workers, in order to help address the workforce shortage. SB 154 accomplishes both of these objects by: • Establishing a Home Care Employment Standards Advisory Board that will investigate, advise, and develop recommendations on Medicaid rates and other policies to improve the wages, working conditions, and recruitment and retention of direct care workers. • Requiring that agencies providing personal care services spend at least 70 percent of the total annual funding they receive from the department for personal care services on the pay and benefits of Personal Care Assistants providing such services. 2:46:26 PM CHAIR BJORKMAN announced invited testimony on SB 154. 2:46:37 PM JUDY JESSEN, Senior Political and Advocacy Organizer, Service Employees International Union 775 (SEIU), Anchorage, Alaska, testified by invitation on SB 154. She stated that the bill strengthens Alaska's long-term care system by addressing the growing demand for senior and disability care amid a shrinking caregiver workforce. SB 154 ensures a higher portion of Medicaid personal care funds of 70 percent that goes directly to caregiver pay and benefits rather than agency overhead, improving transparency and compensation. She said with home care significantly cheaper than institutional care, SB 154 supports a sustainable, cost-effective, and well-trained care workforce for Alaska's aging population.  2:50:41 PM MS. JESSEN stated that some unionized caregivers received $2$4 hourly raises, but many did not, and there's little transparency on how agencies used Medicaid rate increases. SB 154 addresses this by requiring reporting on how funds are spent and creating a Workforce Standards Advisory Board to bring together caregivers, providers, clients, and the Department of Health to plan for long-term workforce needs. SB 154 promotes accountability, informed rate setting, and collaborative planning to strengthen Alaska's home care system and address the growing caregiver shortage. 2:53:38 PM ISATOU MBOGE, Caregiver, Service Employees International Union (SEIU), Anchorage, Alaska, testified by invitation on SB 154. She said she helps clients with daily activities they can't do on their own, such as bathing, grooming, and mobility support. Caregiving is more than a job because she cares and values the relationships she builds. She said there's a serious shortage of caregivers, especially in rural areas, and many must work multiple part-time jobs without health insurance. SB 154's advisory board would allow caregivers, clients, and agencies to collaborate on issues like training, workforce needs and giving clients a stronger voice in their care. 2:57:42 PM BJ REDD MENDEZ, Caregiver, Service Employees International Union (SEIU), Wasilla, Alaska, testified by invitation on SB 154. She stated that she cares for her father, brother, and son, all with serious health conditions. She said being a caregiver in Alaska is difficult and undervalued; low pay, high living costs, and lack of health insurance force her to work two full-time jobs. She said after 25 years of caregiving, she is asking for better pay, benefits, and respect for the profession. SB 154 would help address these needs, support caregivers, and ensure quality care for Alaskans who depend on us. 3:02:10 PM CHAIR BJORKMAN held SB 154 in committee.