STAND. COM. REP. NO. 2513

                                   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 Committee on Ways and Means, to which was referred S.B.
No. 2062, S.D. 1, entitled:

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

begs leave to report as follows:

     The purpose of this bill is to extend the termination date
of the Joint Legislative Committee on Long-Term Care, modify the
scope and due date of, and appropriations and expending agency
for the long-term care actuarial study, and to extend the
appropriation for the joint legislative committee into fiscal
year 2000-2001.

     Specifically, this bill:

     (1)  Extends the termination date of the joint legislative
          committee created by Act 339, Session Laws of Hawaii
          1997, two years from June 30, 2000 to June 30, 2002;

     (2)  Modifies the scope of the long-term care actuarial
          study required by Act 93, Session Laws of Hawaii 1999,
          to:

          (A)  Study a plan that is the least expensive, easiest
               to administer, and actuarially sound, rather than
               requiring it to be a mandatory tax-based or
               voluntary premium plan;

 
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          (B)  Increase the beginning coverage to the first two-
               and-a-half years, rather than the first two years,
               of nursing home care in a front-end plan to be
               considered;

          (C)  Start coverage earlier, on the 91st day, rather
               than the 366th day of disability in a back-end
               plan to be considered;

          (D)  Require the study to select one model for
               recommendation and report on that model;

          (E)  Eliminate:

               (i)  The requirement for the study to include an
                    analysis of H.B. No. 31, H.D. 1 and H.D. 2,
                    Regular Session of 1993; and

              (ii)  The joint legislative committee's power to
                    contract with persons who produced certain
                    reports for the Executive Office on Aging

          (F)  Add to the scope of the study the following:

               (i)  Examine how to integrate a state-sponsored
                    universal program of long-term care with the
                    private insurance model of long-term care,
                    with a goal of supplementing private
                    insurance so as to provide a continuum of
                    care;

              (ii)  Include a proposed model for financing a
                    state-sponsored universal program of long-
                    term care for a target population that cannot
                    afford long-term care insurance;

             (iii)  Specify the amount of moneys that must be
                    collected from each eligible person to
                    adequately finance a state-sponsored
                    universal program of long-term care and the
                    mechanism for collecting those moneys;

              (iv)  Make recommendations on whether a subsidy
                    from the general fund or other state revenues
                    is necessary for adequate capitalization and
                    reserves, and if so, the amount of subsidy;


 
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               (v)  Make recommendations on the best manner of
                    administering a state trust fund for long-
                    term care; and

              (vi)  Possible examination of financing models in
                    other countries;

     (3)  Allows the joint legislative committee to consider
          knowledge of a contractor of past state efforts to
          establish a universal long-term care program;

     (4)  Requires the Departments of Taxation and Budget and
          Finance to cooperate with the contractor in carrying
          out the study;

     (5)  Delays the due date of the study two years to
          November 15, 2001;

     (6)  Delays the introduction of legislation by the joint
          legislative committee, with the advice of the
          contractor, to the Regular Session of 2002 rather than
          2000;

     (7)  Removes the $100,000 appropriated amount for the study
          and leaves the amount blank for purposes of further
          discussion, and changes the appropriation period from
          fiscal year 1999-2000 to 2000-2001;

     (8)  Clarifies that the expending agency for the
          appropriation for the study is the House of
          Representatives and the Senate, and not the joint
          legislative committee; and

     (9)  Extends the appropriations of $5,000 each to the House
          of Representatives and the Senate for expenses of the
          joint legislative committee into fiscal year 2000-2001.

     Your Committee finds that this bill will enable the joint
legislative committee to complete its work and that the long-term
care actuarial study, as re-fashioned in this bill, will be more
effective.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of S.B. No.
2062, S.D. 1, and recommends that it pass Third Reading.


 
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                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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