REPORT TITLE:
Long-Term Care; Actuary Study


DESCRIPTION:
Clarifies requirements for the actuarial study.  Appropriates $1
for the actuarial study. (HB1834 HD2)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        1834
HOUSE OF REPRESENTATIVES                H.B. NO.           H.D. 2
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO LONG-TERM CARE. 


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Act 339, Session Laws of Hawaii 1997, as amended
 
 2 by Act 93, Session Laws of Hawaii 1999, is amended by amending
 
 3 section 4 to read as follows:
 
 4      "SECTION 4.  The joint legislative committee shall submit a
 
 5 report of its findings and recommendations to the legislature by
 
 6 December 1, 1998.  The joint legislative committee shall cease to
 
 7 exist on June 30, [2000.]     ."
 
 8      SECTION 2.  Act 93, Session Laws of Hawaii 1999, is amended
 
 9 by amending section 9 to read as follows:
 
10      "SECTION 9.  (a)   The joint legislative committee on
 
11 long-term care shall contract for a study on the feasibility and
 
12 advisability of establishing a state-sponsored universal program
 
13 of long-term care that offers comprehensive, protective coverage
 
14 to the largest numbers of people as reasonably possible through
 
15 [either a mandatory tax-based or voluntary premium] a funding
 
16 approach[.] that is the least expensive, easiest to administer,
 
17 and actuarially sound.  The study shall be limited to the number
 
18 of alternatives that can be supported by the funds appropriated.
 
19 The study shall [include,] consider, but not be limited to,
 
20 alternative models of:
 

 
Page 2                                                     1834
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      (1)  Front-end universal program in which coverage would
 
 2           begin [either] with:
 
 3           (A)  The first two and a half years of nursing home
 
 4                care or comparable type care; or
 
 5           (B)  One and a half years or other length of time, of
 
 6                community or home care covered by the program,
 
 7           with a reliance upon private insurance for the
 
 8           remaining years; 
 
 9      (2)  Back-end universal program in which coverage would
 
10           begin on the [366th] 91st day of disability and include
 
11           nursing home care or comparable care, or community or
 
12           home care, or any combination of these, with the first
 
13           year to be covered out of pocket or by privately
 
14           purchased long-term care insurance; or
 
15      (3)  Comprehensive universal program to provide lifetime
 
16           full coverage, regardless of private insurance
 
17           coverage.
 
18      (b)  The study shall also:
 
19      (1)  Examine how to integrate a state-sponsored universal
 
20           program of long-term care with the insurance model of
 
21           long-term care under this Act, with a goal of
 
22           supplementing private insurance so as to provide a
 
23           continuum of care;
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1      (2)  Include a proposed model for financing a state-
 
 2           sponsored universal program of long-term care for a
 
 3           target population that cannot afford long-term care
 
 4           insurance;
 
 5      (3)  Specify the amount of moneys that must be collected
 
 6           from each eligible person to adequately finance a
 
 7           state-sponsored universal program of long-term care and
 
 8           the mechanism for collecting those moneys;
 
 9      (4)  Make recommendations on whether a subsidy from the
 
10           general fund or other state revenues is necessary for
 
11           adequate capitalization and reserves, and if so, the
 
12           amount of subsidy; and
 
13      (5)  Make recommendations on the best manner of
 
14           administering a state trust fund for long-term care.
 
15      (c)  The study may include an examination of universal long-
 
16 term care financing models of other countries.
 
17      [The study shall further include an analysis of the
 
18 provisions of House Bill No. 31, H.D. 1 and H.D. 2, Regular
 
19 Session of 1993, that proposed the "Hawaii Family Hope Program
 
20 Act", and make recommendations on legislation for introduction in
 
21 the 2000 regular session, including figures for the amount of a
 
22 tax to be imposed and a premium to be collected.
 
23      For purposes of this study, the joint legislative committee
 

 
Page 4                                                     1834
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 on long-term care may contract with one or more of the same
 
 2 consultants and advisers, excluding legal consultants, who
 
 3 provided services to the Executive Office on Aging for its
 
 4 reports, "Financing Long Term Care, A Report to the Hawaii State
 
 5 Legislature", dated January, 1991, and "The Long Term Care
 
 6 Advisory Board, Report to the Hawaii State Legislature", dated
 
 7 February, 1992; provided that procurement of services from the
 
 8 same consultants and advisers shall be exempt from any of the
 
 9 provisions of the the Hawaii Public Procurement Code, as provided
 
10 by section 103D-102(b)(6), Hawaii Revised Statutes, on the basis
 
11 that this study is an update of those reports to design a state-
 
12 sponsored universal long-term care model that accounts for
 
13 current statistics and the condition of the State's economy.
 
14 Inasmuch as the groundwork for this follow-up study has been laid
 
15 in those previous reports by the same consultants and advisers,
 
16 the legislature finds that contracting with new consultants and
 
17 advisers would triple the cost of the study and would be
 
18 unnecessary duplication of work.  The legislature further finds
 
19 that the same consultants and advisers are qualified to conduct
 
20 this follow-up study.]
 
21      (d)  In selecting a contractor by bid for the study, the
 
22 joint legislative committee on long-term care shall consider,
 
23 among other things, the knowledge of the contractor of past
 

 
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                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 efforts of the State to establish a universal long-term care
 
 2 program.
 
 3      All state agencies shall cooperate with the contractor for
 
 4 purposes of providing facts, figures, data, projections,
 
 5 estimations, and other information to effectuate this study."
 
 6      SECTION 3.  Act 93, Session Laws of Hawaii 1999, is amended
 
 7 by amending section 10 to read as follows:
 
 8      "SECTION 10.  The consultants [hired] contracted under
 
 9 section 11 of this Act shall submit a report of findings and
 
10 recommendations to the governor and the legislature not later
 
11 than November 15, [1999.]     .  Based on that report, the joint
 
12 legislative committee on long-term care shall draft legislation,
 
13 with the advice of the consultants, for introduction in the
 
14 regular session of [2000;]     ; provided that the services of
 
15 the consultants for advising in drafting the legislation shall be
 
16 considered as a part of their services under section 11[.] of
 
17 this Act."
 
18      SECTION 4.  Act 93, Session Laws of Hawaii 1999, is amended
 
19 by amending section 11 to read as follows:
 
20      "SECTION 11.  There is appropriated out of the general
 
21 revenues of the State of Hawaii, the sum of [$100,000,] $1 or so
 
22 much thereof as may be necessary for fiscal [year 1999-2000,]
 
23 biennium           for the joint legislative committee on long-
 

 
Page 6                                                     1834
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 term care to hire consultants to conduct a study on the
 
 2 feasibility and advisability of establishing a state-sponsored
 
 3 universal program of long-term care that offers comprehensive,
 
 4 protective coverage[.], as specified under section 9 of this
 
 5 Act."
 
 6      SECTION 5.  Act 93, Session Laws of Hawaii 1999, is amended
 
 7 by amending section 12 to read as follows:
 
 8      "SECTION 12.  The sum appropriated by section 11 of this Act
 
 9 shall be expended by the [joint legislative committee on long-
 
10 term care.] legislature."
 
11      SECTION 6.  Act 93, Session Laws of Hawaii 1999, is amended
 
12 by amending section 13 to read as follows:
 
13      "SECTION 13.  There is appropriated out of the general
 
14 revenues of the State of Hawaii the following sums[,] or so much
 
15 thereof as may be necessary[,] for fiscal year [1999-2000]
 
16 for expenses of the joint legislative committee on long-term care
 
17 to conduct one public briefing each on Oahu, Kauai, and Maui, and
 
18 two public briefings on Hawaii, on the findings and
 
19 recommendations of the actuarial study undertaken pursuant to
 
20 section 11 of this Act.
 
21      House of representatives           $5,000
 
22      Senate                             $5,000"
 
23      SECTION 7.  Statutory material to be repealed is bracketed.
 

 
Page 7                                                     1834
                                     H.B. NO.           H.D. 2
                                                        
                                                        

 
 1 New statutory material is underscored.
 
 2      SECTION 8.  This Act shall take effect upon its approval;
 
 3 provided that sections 4, 5, and 6 shall take effect on July 1,
 
 4 2000.