STAND. COM. REP. NO. 2033

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2062
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committees on Health and Human Services and Commerce
and Consumer Protection, to which was referred S.B. No. 2062
entitled: 

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

beg leave to report as follows:

     The purpose of this measure is to extend the actuarial study
on long-term care and clarify the requirements for the study,
extend the sunset date of the Joint Legislative Committee on
Long-Term Care (JLC), and make unspecified appropriations for the
JLC expenses.

     Your Committees received testimony in support of this
measure from the Executive Office on Aging, Hawaii State
Commission on the Status of Women, Faith Action for Community
Equity, Kokua Council, Policy Advisory Board for Elder Affairs,
and American Association of Retired Persons.  Informational
testimony was presented by the Insurance Commissioner and Hawaii
State Association of Life Underwriters.

     Your Committees find that the need for long-term care, which
is already significant, will continue to grow as Hawaii's
population ages.  Due to the high costs associated with long-term
care, more and more families can be expected to endure financial
hardships, and even impoverishment, unless a better method of
financing long-term care is developed soon.  Providing adequate
care for the aged and disabled is an economic burden for many
people.  Long-term care insurance policies offer a means of

 
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alleviating that load.  However, many people cannot afford those
policies and there are usually limits on services and duration of
benefits in coverages.

     This measure allows the JLC to finish its ongoing work that
commenced with Act 339, Session Laws of Hawaii 1997.  A major
portion of the JLC's work was accomplished with Act 93, Session
Laws of Hawaii 1999, which enacted the Long-Term Care Insurance
Model Act.  But, much more work needs to be done to explore the
mechanics of establishing a state-sponsored long-term care system
that is effective, cost-efficient, and covers the largest number
of people.  Your Committees sincerely believe that only a state-
sponsored system of long-term care, in some form, can adequately
provide for Hawaii's elderly and disabled.

     Your Committees have amended this bill by:

     (1)  Requiring that the actuarial study focus on one model
          to report on;

     (2)  Clarifying that the House and Senate may expend the
          appropriation rather than the JLC;

     (3)  Changing from the first two years to two and one-half
          years the time for beginning front-end nursing home
          care;

     (4)  Changing from the 366th day to the 91st day the time
          for beginning back-end coverage; and

     (5)  Making technical, nonsubstantive changes to reflect
          preferred drafting style.

     As affirmed by the records of votes of the members of your
Committees on Health and Human Services and Commerce and Consumer
Protection that are attached to this report, your Committees are
in accord with the intent and purpose of S.B. No. 2062, as
amended herein, and recommend that it pass Second Reading in the
form attached hereto as S.B. No. 2062, S.D. 1, and be referred to
the Committee on Ways and Means.


 
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                                   STAND. COM. REP. NO. 2033
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                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Health and Human
                                   Services and Commerce and
                                   Consumer Protection,



____________________________       ______________________________
BRIAN KANNO, Co-Chair              SUZANNE CHUN OAKLAND, Chair



____________________________       
BRIAN T. TANIGUCHI, Co-Chair

 
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