REPORT TITLE:
Long-Term Care; Actuary Study


DESCRIPTION:
Extends the sunset date of the Joint Legislative Committee on
Long-term Care Financing from June 30, 2000, to June 30, 2002.
Extends the actuarial study on long-term care from November 15,
1999, to November 15, 2001.  Clarifies requirements for the
actuarial study.  Appropriates $200,000 for the actuarial study.
(SB2062 HD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        2062
THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 2000                                H.D. 1
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.] 2002."
 
 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] with an actuary to determine the cost of
 
13 establishing a state-sponsored [universal] program of long-term
 
14 care that offers comprehensive, protective coverage to the
 
15 largest numbers of people as reasonably possible through [either
 
16 a mandatory tax-based or voluntary premium] a funding approach[.]
 
17 that is the least expensive, easiest to administer, and
 
18 actuarially sound.  The study shall be limited to the number of
 
19 alternatives that can be supported by the funds appropriated.
 

 
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 1 The study shall [include,] consider, but not be limited to,
 
 2 alternative models of:
 
 3      (1)  Front-end universal program in which coverage would
 
 4           begin [either] with:
 
 5           (A)  The first two and a half years of nursing home
 
 6                care or comparable type care; or
 
 7           (B)  One and a half years or other length of time, of
 
 8                community or home care covered by the program,
 
 9           with a reliance upon private insurance for the
 
10           remaining years; 
 
11      (2)  Back-end universal program in which coverage would
 
12           begin on the [366th] 91st day of disability and include
 
13           nursing home care or comparable care, or community or
 
14           home care, or any combination of these, with the first
 
15           year to be covered out of pocket or by privately
 
16           purchased long-term care insurance; or
 
17      (3)  Comprehensive universal program to provide lifetime
 
18           full coverage, regardless of private insurance
 
19           coverage.
 
20      [The study shall further include an analysis of the
 
21 provisions of House Bill No. 31, H.D. 1 and H.D. 2, Regular
 
22 Session of 1993, that proposed the "Hawaii Family Hope Program
 
23 Act", and make recommendations on legislation for introduction in
 

 
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 1 the 2000 regular session, including figures for the amount of a
 
 2 tax to be imposed and a premium to be collected.
 
 3      For purposes of this study, the joint legislative committee
 
 4 on long-term care may contract with one or more of the same
 
 5 consultants and advisers, excluding legal consultants, who
 
 6 provided services to the Executive Office on Aging for its
 
 7 reports, "Financing Long Term Care, A Report to the Hawaii State
 
 8 Legislature", dated January, 1991, and "The Long Term Care
 
 9 Advisory Board, Report to the Hawaii State Legislature", dated
 
10 February, 1992; provided that procurement of services from the
 
11 same consultants and advisers shall be exempt from any of the
 
12 provisions of the the Hawaii Public Procurement Code, as provided
 
13 by section 103D-102(b)(6), Hawaii Revised Statutes, on the basis
 
14 that this study is an update of those reports to design a state-
 
15 sponsored universal long-term care model that accounts for
 
16 current statistics and the condition of the State's economy.
 
17 Inasmuch as the groundwork for this follow-up study has been laid
 
18 in those previous reports by the same consultants and advisers,
 
19 the legislature finds that contracting with new consultants and
 
20 advisers would triple the cost of the study and would be
 
21 unnecessary duplication of work.  The legislature further finds
 
22 that the same consultants and advisers are qualified to conduct
 
23 this follow-up study.]
 

 
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 1      (b)  The study shall also:
 
 2      (1)  Examine how to integrate a state-sponsored universal
 
 3           program of long-term care with the insurance model of
 
 4           long-term care under this Act, with a goal of
 
 5           supplementing private insurance so as to provide a
 
 6           continuum of care;
 
 7      (2)  Include a proposed model for financing a state-
 
 8           sponsored universal program of long-term care for a
 
 9           target population that cannot afford long-term care
 
10           insurance;
 
11      (3)  Specify the amount of moneys that must be collected
 
12           from each eligible person to adequately finance a
 
13           state-sponsored universal program of long-term care and
 
14           the mechanism for collecting those moneys;
 
15      (4)  Make recommendations on whether a subsidy from the
 
16           general fund or other state revenues is necessary for
 
17           adequate capitalization and reserves, and if so, the
 
18           amount of subsidy; and
 
19      (5)  Make recommendations on the best manner of
 
20           administering a state trust fund for long-term care.
 
21      (c)  The study may include an examination of universal long-
 
22 term care financing models of other countries.
 

 
 
 
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 1      (d)  In selecting a contractor by bid for the study, the
 
 2 joint legislative committee on long-term care shall consider,
 
 3 among other things, the knowledge of the contractor of past
 
 4 efforts of the State to establish a universal long-term care
 
 5 program.
 
 6      The departments of taxation and budget and finance shall
 
 7 cooperate with the contractor for purposes of providing facts,
 
 8 figures, data, projections, estimations, and other information to
 
 9 effectuate this study."
 
10      SECTION 3.  Act 93, Session Laws of Hawaii 1999, is amended
 
11 by amending section 10 to read as follows:
 
12      "SECTION 10.  The consultants [hired] contracted under
 
13 section 11 of this Act shall submit a report of findings and
 
14 recommendations to the governor and the legislature not later
 
15 than November 15, [1999.] 2001.  Based on that report, the joint
 
16 legislative committee on long-term care shall draft legislation,
 
17 with the advice of the consultants, for introduction in the
 
18 regular session of [2000;] 2002; provided that the services of
 
19 the consultants for advising in drafting the legislation shall be
 
20 considered as a part of their services under section 11[.] of
 
21 this Act."
 
22      SECTION 4.  Act 93, Session Laws of Hawaii 1999, is amended
 
23 by amending section 11 to read as follows:
 

 
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 1      "SECTION 11.  There is appropriated out of the general
 
 2 revenues of the State of Hawaii, the sum of [$100,000,]
 
 3 $200,000 or so much thereof as may be necessary for fiscal [year
 
 4 1999-2000,] biennium           for the joint legislative
 
 5 committee on long-term care to hire consultants to conduct a
 
 6 study on the feasibility and advisability of establishing a
 
 7 state-sponsored universal program of long-term care that offers
 
 8 comprehensive, protective coverage[.], as specified under section
 
 9 9 of this Act."
 
10      SECTION 5.  Act 93, Session Laws of Hawaii 1999, is amended
 
11 by amending section 12 to read as follows:
 
12      "SECTION 12.  The sum appropriated by section 11 of this Act
 
13 shall be expended by the [joint legislative committee on long-
 
14 term care.] legislature."
 
15      SECTION 6.  Act 93, Session Laws of Hawaii 1999, is amended
 
16 by amending section 13 to read as follows:
 
17      "SECTION 13.  There is appropriated out of the general
 
18 revenues of the State of Hawaii the following sums[,] or so much
 
19 thereof as may be necessary[,] for fiscal year [1999-2000]
 
20          , for expenses of the joint legislative committee on
 
21 long-term care to conduct one public briefing each on Oahu,
 
22 Kauai, and Maui, and two public briefings on Hawaii, on the
 
23 findings and recommendations of the actuarial study undertaken
 
24 pursuant to section 11 of this Act[.]:
 

 
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 1      House of Representatives           $5,000
 
 2      Senate                             $5,000"
 
 3      SECTION 7.  Statutory material to be repealed is bracketed.
 
 4 New statutory material is underscored.
 
 5      SECTION 8.  This Act shall take effect upon its approval;
 
 6 provided that sections 4, 5, and 6 shall take effect on July 1,
 
 7 2000.