SB 247-VETERANS'ELIGIBILITY FOR LONGEVITY BONUS MS. ANNETTE KREITZER, Legislative Staff for Senator Leman, stated SB 247 deals with a narrow segment of the population who are veterans in nursing homes and whose nursing home care is being paid for by veteran's benefits. MR. LADDIE SHAW, Special Assistant, Office of Veterans Affairs, stated support for SB 247. The veterans are deserving of the longevity benefits even if they are receiving other benefits. CHAIRMAN WARD asked whether SB 247 is a discrimination issue if longevity bonuses are expanded to include veterans benefits recipients. MR. JAMES KOHN, Director of Alaska Longevity Programs, stated no, SB 247 would not expand longevity bonuses to any persons other than veterans. Number 541 SENATOR GREEN asked if people on Medicare and Social Security are currently receiving their longevity bonuses. MR. KOHN said yes, social security and other benefits are considered personal income and would fall under the category of the 1992 statute. Only three categories of payment in skilled nursing care would make a person ineligible for the longevity bonus: Medicare, Medicaid, and veterans' benefits. SENATOR GREEN asked why a person on Medicare would not be eligible for the longevity bonus. MR. KOHN stated the person on Medicare does not receive the bonus because Medicare is a federal benefit. Anyone who is receiving state or federal benefits for skilled nursing care immediately becomes ineligible for the bonus. SB 247 would make an exception to the statute. SENATOR PHILLIPS asked where these veterans are currently residing. MS. MARIE MARX, Legislative Staff for Senator Leman, stated one person lives in Fairbanks, two live in Providence in Anchorage, one in Sitka, and one in Seward. SENATOR PHILLIPS asked to abstain from voting because he works for Providence Hospital during the interim period. Senator Elton objected. CHAIRMAN WARD asked if people receiving Native corporation dividends were still eligible for the longevity bonus. MS. KREITZER stated if a Native corporation dividend was received that person would be ineligible for the longevity bonus that month, but can reapply the following month. SENATOR PHILLIPS asked if SB 247 creates a limited entry program. MS. MARX stated yes, it is only for people who applied before the 1997 deadline, and the application needs to be on file. SENATOR GREEN asked if any circumstances would change the amount received from the federal government for a person living at home, then moving into a skilled nursing facility. MS. KREITZER stated nothing would change the amount received from the federal government. SENATOR GREEN asked if a person's residency at a skilled nursing facility impacts how much that person receives from the federal government. MS. MARX stated it depends on what the coverage was when that person signed up for benefits. The monthly stipend and monthly contract determine how much that person will receive. SENATOR GREEN stated it is hard to differentiate between veteran's benefits and Medicare. MS. KREITZER stated that Senator Leman's belief is these people put their lives at risk and are deserving of the longevity bonus. MS. NANCY WELLER, Medical Assistance Administrator, Division of Medical Assistance, stated Medicare has limited skilled nursing benefits. Medicare covers nursing home care for a short duration, usually for rehabilitation after a hospitalization. Medicaid pays for long-term nursing care. SENATOR GREEN asked what the definition of Medicare is. MS. WELLER stated Medicare is a federal program funded under Title 18 of the Social Security Act. It is health care coverage that is available to disabled people, and people age 65 and older. SENATOR GREEN asked if people on Medicare pay premiums. MS. WELLER replied yes. For lower income people Medicaid pays the premium for Medicare. SENATOR GREEN asked if a person were to pay their own premium whether they would be eligible for the longevity bonus. MS. WELLER stated yes. SENATOR GREEN stated the only difference between some people is that their premiums are paid from Medicaid for the Medicare program. She asked if there is a distinction between people who have Medicaid assistance with their premium and people who do not. MS. WELLER replied people who do not receive Medicaid assistance to pay for premiums are people who are not low income. SENATOR GREEN stated for the purpose of longevity bonus those people are treated the same. MR. KOHN stated in the Medicare program a premium is paid. If one cannot pay the premium then Medicaid will pay the premium. Veterans do not pay a premium for veterans benefits because they earn those benefits. SENATOR WILKEN moved SB 247 out of committee with individual recommendations and accompanying fiscal notes. Without objection, the motion carried.