HB 96-PIONEERS' HOME AND VETERANS' HOME RATES    6:15:05 PM CO-CHAIR KREISS-TOMKINS announced that the final order of business would be HOUSE BILL NO. 96, "An Act relating to Alaska Pioneers' Home and Alaska Veterans' Home rates and services." [Before the committee, adopted as a work draft on 3/28/19, was the committee substitute (CS) for HB 96, Version 31-LS0646\U, Marx, 3/27/19, referred to as "Version U."] 6:15:35 PM CO-CHAIR FIELDS thanked the various contributors to the proposed legislation and noted the updated zero fiscal note (FN). REPRESENTATIVE WOOL expressed his understanding that the rate increase proposed under Version U would bring the rates in line with inflation and counteract the higher rate increase proposed by the [Governor Michael J. Dunleavy] administration. He asked whether the rates would revert to what they were prior to the proposed rate increase, if HB 96 did not pass. 6:18:18 PM CLINTON LASLEY, Director, Division of Alaska Pioneer Homes (DAPH), answered that the rates currently proposed by the administration are in the regulatory process; therefore, they will be posted for 60 days for public testimony, and the commissioner of the Department of Health and Social Services (DHSS) will make a final decision on the rates based on the information gathered. He stated that if Version U does not pass, that regulatory process would proceed, and a determination made. REPRESENTATIVE WOOL asked if the rates under Version U are lower or higher than the proposed rates currently in the regulatory process. MR. LASLEY responded that the rates under Version U are lower; the administration's proposed rates are reflective of the true cost of providing services. He maintained that the rates proposed under Version U are less than what it costs to provide services. REPRESENTATIVE WOOL asked for confirmation that the rates proposed under Version U are between the current rates and those proposed by the administration. MR. LASLEY responded, "That's correct." 6:20:29 PM REPRESENTATIVE STORY relayed that she has conflicting thoughts about Version U; she hesitates to put rates into policy as it is not something legislators do and impedes flexibility. She expressed her concern with the huge jump in rates for Alaska Pioneer Homes (APH) and the impact to seniors and families. She offered that incremental rate increases are better for planning. REPRESENTATIVE WOOL expressed that he also has difficulties with Version U and agrees that legislators setting rates is micromanagement. He made an analogy with the Alaska Marine Highway System (AMHS): it is a heavily subsidized service that many Alaskans use; there are probably people who could afford to pay the true cost of riding the ferry; it costs $10,000 to travel by ferry from Bellingham to Kodiak with a car; it is a question of the level of subsidy. He suggested that Version U "strikes a middle ground." He mentioned that the issue involves many factors - the appropriate level of rates and subsidy, depletion of one's resources, and medical billing. 6:25:04 PM REPRESENTATIVE LEDOUX expressed her concerns with Version U: some people can pay; some can pay what they are able; and no one will be evicted. She asked, "At the end of one's life, should the inheritance go to the family members ... or should people pay what they can?" CO-CHAIR KREISS-TOMKINS stated that the effect of what the administration is proposing is what many conservatives like to call a "death tax"; the assets of anyone in APH would be liquidated much quicker and would go to the state. 6:27:10 PM REPRESENTATIVE SHAW moved to report the CS for HB 96, Version 31-LS0646\U, Marx, 3/27/19, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 96(STA) was reported from the House State Affairs Standing Committee.