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