SENATE STATE AFFAIRS COMMITTEE March 2, 2000 3:37 p.m. MEMBERS PRESENT Senator Jerry Ward, Chairman Senator Lyda Green Senator Gary Wilken Senator Randy Phillips Senator Kim Elton MEMBERS ABSENT All Members Present COMMITTEE CALENDAR Confirmation Hearing: Andrea Jacobson, APOC. SENATE BILL NO. 247 "An Act relating to eligibility of certain veterans for longevity bonus payments; and providing for an effective date." - HEARD AND HELD SENATE BILL NO. 236 "An Act establishing Prisoners of War and Missing in Action Recognition Days and Women Veterans Day; and providing for an effective date." - MOVED SB 236 OUT OF COMMITTEE PREVIOUS SENATE COMMITTEE ACTION SB 236 - See Rules minutes dated 3/3/00. SB 247 - No previous Senate action. WITNESS REGISTER Ms. Andrea Jacobson Address Not Provided Ketchikan, AK 99901 POSITION STATEMENT: Confirmation Hearing. Ms. Annette Kreitzer Aide to Senator Leman Alaska State Capitol Juneau, AK 99801 POSITION STATEMENT: Presented SB 247. Mr. Emory Wheeler P.O. Box 1209 Nome, AK 99762 POSITION STATEMENT: Supports SB 236. Ms. Patricia Hutchinson P.O. Box 233 Tok, AK 99780 POSITION STATEMENT: Commented on SB 236. Mr. Laddie Shaw Special Assistant Office of Veterans Affairs Department of Military & Veterans Affairs P.O. Box 5800 Ft. Richardson, AK 99505-0800 POSITION STATEMENT: Commented on SB 247 and SB 236. Mr. James Kohn Division of Alaska Longevity Programs Department of Administration Juneau, AK 99801 POSITION STATEMENT: Commented on SB 247. Mr. Bob Boen Co-Chair of P.O.W. Committee Address Not Provided POSITION STATEMENT: Supports SB 236. ACTION NARRATIVE TAPE 00-04, SIDE A Number 001 CHAIRMAN WARD called the Senate State Affairs Committee to order at 3:37 p.m. The first order of business to come before the committee was the confirmation hearing of Andrea Jacobson to the Alaska Public Offices Commission (APOC). MS. ANDREA JACOBSON stated that she enjoys being involved in a political process without being a political figure. CHAIRMAN WARD asked Ms. Jacobson if she is currently a peace officer. MS. JACOBSON replied she is an investigator with the Ketchikan Police Department. SENATOR ELTON asked if Ms. Jacobson was being appointed to a non- partisan seat on APOC. MS. JACOBSON said that was correct. SENATOR PHILLIPS asked why Ms. Jacobson was interested in APOC. MS. JACOBSON stated because APOC is quasi-judicial and streamlining regulations sounded interesting. SENATOR GREEN moved to submit Ms. Jacobson's name to the full body for consideration to APOC. Without objection, it was so ordered. SB 247-VETERANS'ELIGIBILITY FOR LONGEVITY BONUS MS. ANNETTE KREITZER, legislative staff to Senator Leman, presented SB 247. A person who resides in a nursing home can receive the longevity bonus only if "the cost of care of the person at the nursing home is paid for entirely from private sources." Persons living in nursing homes who receive veterans' benefits are denied longevity bonus payments. Veterans' benefits are federal benefits earned by those who have served this country in the armed forces. SB 247 amends the eligibility criteria for nursing home patients, to allow the cost of care to be paid for from private sources, veterans' benefits, or a combination of private sources and veterans' benefits. Those veterans disqualified under the existing law will be permitted to reapply for qualification for bonus payments during a six-month window open from July 1, 2000 to January 1, 2001. Eligible veterans who reapply will receive the monthly longevity bonus that they would have received had they not been disqualified. The longevity bonus payments are prospective from the time of re-qualification. A proposed committee substitute has been drafted to ensure SB 247 was drafted narrowly. SENATOR WILKEN moved CS for SB 247 (1-LS1363\G). Without objection CS for SB 247 (1-LS1363\G) was adopted. CHAIRMAN WARD asked how the CS differs from the original bill. MS. KREITZER stated it clarifies that a person who moves into a nursing home can pay out of private funds and adds veterans' benefits. Section 2 (a) speaks to the individuals who were receiving a longevity bonus and then disqualified because they began receiving veterans' benefits when they went into a nursing home. Section 2 (b) deals with persons who are veterans and applied, but did not qualify. SENATOR PHILLIPS asked if Social Security benefits disqualify people for a longevity bonus also. Number 726 MS. KREITZER stated that Social Security benefits are not the issue they focused on. SENATOR PHILLIPS asked what the difference was between receiving veterans' benefits and Social Security benefits when someone is applying for a longevity bonus, and whether Social Security benefits are considered federal money or private source funding. MS. KREITZER stated that she focused on the veterans' aspect of disqualification. She was not certain how Social Security benefits are considered. SENATOR GREEN stated that people 65 and older who choose to use insurance have no choice but to fall under Medicare, even though they are still paying for that coverage. Number 994 MR. EMORY WHEELER stated he is a veteran and supports 247. SB 247 has little fiscal impact and would greatly help the six individuals who are disqualified from receiving longevity benefits. SENATOR PHILLIPS asked if veterans' benefits and Social Security benefits were considered public benefits or private benefits. MR. LADDIE SHAW, Special Assistant to the Adjutant General of the Department of Military & Veterans Affairs, stated compensation would be made to a person who was wounded during duty and that would be considered a private source. SENATOR WILKEN said Social Security should be a private source because the government holds that money in trust until the time a beneficiary draws off of the account. MR. JIM KOHN, Director of the Division of Alaska Longevity Programs, stated there is confusion between income and payment. Income includes Social Security and veterans' benefits; those are private payments. Payments or benefits come from the state or federal government in the form of Medicare and Medicaid. Disqualification was placed on the longevity bonus when a recipient of the bonus entered a skilled nursing facility. They were unable to receive Medicaid benefits because the longevity bonus disqualified them on an income basis. The federal government ruled a recipient of the longevity bonus could not give up that payment or disqualify themselves from the payment to qualify for Medicaid. The legislature passed a bill to disqualify people for longevity bonuses who were in skilled nursing facilities so they would qualify for Medicaid. In 1992, a change was made in statute to accommodate people who entered a skilled nursing facility using their own funds. While people are using their own funds, the legislature said that person should not be disqualified from the longevity bonus. If the bill is paid with other benefits, rather than personal funds, that person is now disqualified from receiving the longevity bonus. SB 247 extends the ability of recipients to continue with their payment to a skilled nursing facility if the payment is provided by veterans' benefits or a combination of veterans' benefits and private funds. MR. KOHN said the fiscal note covers one year of bonuses for those disqualified based on veterans' benefits being used for care in a skilled nursing facility. The total fiscal impact would total approximately $12,000 a year. Number 1514 SENATOR GREEN asked whether people are disqualified when they apply for Medicaid only. MR. KOHN stated no. SENATOR GREEN asked who qualifies for Medicaid and Medicare. MR. KOHN stated people who qualify for Medicare need to be between the ages of 62 and 65. People who qualify for Medicaid can be any age range, it varies with their income criteria. The longevity bonus recipients are people who are 69 and older. SENATOR GREEN asked if General Relief Medical Assistance would apply to people over age 69. MR. KOHN replied under current statute persons on General Relief would be ineligible for longevity bonuses. MS. KREITZER stated the only records available from the hearing in 1992 are on tape. No discussion of veterans' benefits were included in those records, it only referred to Medicaid, Medicare, and other sources. SENATOR PHILLIPS stated Medicare and Medicaid costs for veterans pose concerns about discrimination. SENATOR GREEN asked what was mentioned on the tapes that is comparable to veterans' benefits. MS. KREITZER stated Medicaid and Medicare. General Relief was not mentioned. Number 2116 SENATOR ELTON stated the veterans' benefits are earned in a different way than Social Security. SENATOR GREEN stated Medicare can barely be avoided when you are 69 and older. CHAIRMAN WARD stated SB 247 would be held in committee. SB 236-POW/MIA DAY & WOMEN VETERANS DAY TAPE 00-04, SIDE B MR. BOB BOEN, Co-chair of the P.O.W. Recognition Committee, stated support for SB 236 and noted Prisoners of War and Missing in Action persons are treated with special recognition by the federal government. CHAIRMAN WARD asked Mr. Boen about the Women's Veteran's Day. MR. BOEN stated there was no opposition to Women's Veteran's Day. SENATOR PHILLIPS asked Mr. Shaw why those specific dates were chosen as recognition days. MR. SHAW stated April 9, was chosen by Congress and referred to the Anderson bill during the Civil War. The third Friday in September every year was chosen because of the Vietnam Era. SENATOR PHILLIPS asked why the Women's Veteran's Day was chosen as November 9. MR. SHAW stated November 9 was from a proclamation established during the Reagan Administration celebrating Women's Veterans' Week that has been downsized to just one day. SENATOR GREEN asked if it would be better to coordinate these days with Veterans' Day and Memorial Day. MR. SHAW stated the recognition these people get is well deserved. MR. WHEELER stated he supports SB 236. Number 1993 MS. PATRICIA HUTCHINSON, Vietnam veteran, stated support for SB 236. Women's Veterans' Day should be included with other veterans. SENATOR PHILLIPS asked Mr. Shaw if the women veterans had endorsed the Women's Veterans' Day. MR. SHAW replied yes. SENATOR PHILLIPS moved SB 236 out of committee with individual recommendations. There being no objection, the motion carried. There being no further business to come before the committee, CHAIRMAN WARD adjourned the meeting at 4:40 p.m.