STAND. COM. REP. NO.322-02

Honolulu, Hawaii

, 2002

RE: H.B. No. 2638

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committees on Health and Human Services and Housing, to which was referred H.B. No. 2638 entitled:

"A BILL FOR AN ACT RELATING TO THE HAWAII LONG-TERM CARE FINANCING ACT,"

beg leave to report as follows:

The purpose of this bill is to provide for the long-term care needs of the elderly by:

(1) Establishing the Hawaii Long-term Care Benefits Fund (Fund);

(2) Imposing a mandatory premium to be withheld directly by the employer in the amount of $10 per month from individuals aged 25 to 98, except for federal government employees and retirees;

(3) Allowing the premium to be increased from time to time by the administrator; and

(4) Appropriating funds for the Executive Office on Aging to:

    1. Prepare legislation for the Regular Session of 2003;
    2. Designate an entity that will serve as the Fund administrator; and
    3. Establish a governing board.

The Department of Human Services, Hawaii State Commission on the Status of Women, Department of Commerce and Consumer Affairs, Alliance of Residential Care Administrators, Healthcare Association of Hawaii, Kokua Council, the Coalition for Affordable Long Term Care, Hawaii Long Term Care Association, Hawaii Alliance for Retired Americans, AARP, and many individuals testified in support of this measure. The Executive Office on Aging, Policy Advisory Board for Elder Affairs, Hawaii Catholic Conference, and National Association for Social Workers Hawaii Chapter, supported the intent of this measure.

The Chamber of Commerce of Hawaii, PSH Insurance, Inc., NAIFA Hawaii, Legislative Information Services of Hawaii, and a concerned individual opposed this measure. The Office of Information Practices, Heath Insurance Association of America, Tax Foundation of Hawaii, and a concerned individual submitted comments on this measure.

Your Committees recognize that the need for long-term care services is increasing and will continue to increase as our baby-boomers age. A special joint House-Senate committee was formed to develop and implement a plan to support the long-term care needs of Hawaii's citizens, regardless of income. This bill is a result of the committee's efforts.

This bill would mandate contributions to the Fund and would help to offset long-term care costs for contributors. The benefit payments could be paid to a long-term care service provider, a family member, or other legal representative of the recipient as a reimbursement for long-term care expenditures.

Several testifiers stated that they prefer the approach taken in S.B. 2416, S.D. 1, a similar measure.

Accordingly, your Committees have amended this bill by deleting is substance and inserting the substance of S.B. No. 2416, S.D. 1. As amended, this bill:

(1) Establishes a blue ribbon panel to administer the Hawaii Long-term Care Financing Program (Program);

(2) Refers to the premium as a tax and sets fixed annual increases in the amount of five percent through taxable year 2009;

(3) Clarifies the administration of the Program including;

(A) Specifying the members of the blue ribbon panel;

(B) Allowing Fund moneys to be invested; and

(C) Allowing the blue ribbon panel to contract with a qualified entity to administer the Program if it chooses;

(4) Removes the appropriation amount to promote further discussion; and

(5) Makes technical, nonsubstantive amendments for purposes of style, consistency, and clarity.

As affirmed by the records of votes of the members of your Committees on Health and Human Services and Housing that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2638, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2638, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Health and Human Services and Housing,

 

____________________________

MICHAEL P. KAHIKINA, Chair

____________________________

DENNIS A. ARAKAKI, Chair