The first semiannual meeting of 2003 of the Special Advisory Commission of Senior Citizens convened on Thursday, May 8, 2003, at 1:00 PM, at the Holiday Inn Capital Plaza, in Frankfort . Robert Veazey, Chair, called the meeting to order.
Present were:
Members: Hugh Adams, Peggy Baldridge, Mabel Ballinger, Mary Barlow, Elizabeth Billings, Anna Birch, Joe Bishop, J. T. Boling, Joyce Bruce, Frances Cain, Frank Carlton, Scott Cederholm, Velma Childers, Bertha Daniels, Leon Dodge, Randall Donahue, Doris Elrod, Margie England, Doris Engle, Finnell Fields, Rufus Fugate, Virgil Gilliam, James Halvatgis, Bill Harned, Frank Hatfield, Edna Hawkins, Winford Holt, Lee Hopkins, James Huff, Phil Hulsman, Bobby Humes, Edgar Jamison, Argene Jones, W. L. Keith, W. D. Kelley, Dorothy Laganosky, Gayle Lawson, Irving Lipetz, Abby Marlatt, Warren Massey, Phillip Martin, Denver Moore, Frederic Ogden, Elmer Olson, Josephine Osborn, Raymond Osborn, Kenneth Overhults, Norman Pallarito, Jean Phelps, John Polivka, Don Potts, Nancy Purvis, Stanley Ramey, Lillian Rice, Esther Rigby, Mary Robertson, Ray Roundtree, LaVerne Ryan, Don Sarver, John Searcy, Clayton Shannon, Martha Shircliffe, Berton Sisk, Delma Smith, Fred Smith, Martha Smith, Joan Stivers, Claude Tiller, Mary Trimble, Laurel True, Robert Veazey, Chair, Irene Vertrees, Edna Westerfield, Lillian Wheeler, Betty Whitehead, Daisy Williams, and Malcolm Wolford.
Guests: Senator Tom Buford, Kimberly Dunn, Debby Giannini, Representative Derrick Graham, Senator Paul Herron, Betty Jean Moseley, Dr. Doug Moseley, and Representative Charles Siler.
LRC Staff: Katie Carney, Eric Clark, Janice Clark, Gerard Donovan, Gilmore Dutton, Sally Everman, Rhonda Franklin, Jamie Griffin, Doug Huddleston, Linda Hughes, Kathy Jones, Kathy King, Lou Pierce, Cindy Smith, Ellen Steinberg, and Matt Trebelhorn.
Chairman Veazey called the meeting to order and welcomed everyone to the Commission’s first meeting of 2003, of the 26th year of the founding of the Special Advisory Commission of Senior Citizens. Chairman Veazey expressed hope that everyone had a safe and pleasant trip from their home to Frankfort. He then introduced those seated at the head table.
Chairman Veazey announced that the Commission was going to deviate from the printed agenda to accommodate the afternoon’s presenter. He then asked Mr. Gilmore Dutton, Commission Staff Coordinator, to introduce the program and presenter. Mr. Dutton introduced Ms. Debby Giannini, manager of the Certified Retirement Community Program, and Business Development Officer with the Kentucky Tourism Development Cabinet, who had been asked to speak on Kentucky’s Certified Retirement Community Program.
Ms. Giannini said the program is available to all communities in the state. To qualify to become a certified retirement community, communities complete an application which involves a questionnaire, commit $10,000 for advertising, create an advisory committee, designate a contact person, and undergo an on-site evaluation. The advisory committee is composed of mayors, and representatives of the Chamber of Commerce, AARP, Office of Aging, Commission on Military Affairs, Economic Development Cabinet, and League of Cities. She explained that after a community becomes certified it receives national magazine advertising, an 800 number, and a website. The Tourism Development Cabinet recommends that communities design a driving tour of their community which includes tourist attractions, libraries, hospitals, airports, and the downtown area.
Ms. Giannini stated that retirees move to relocate in a smaller town, to go back “home”, or to be near family or friends. She said that retirees will visit an area 3-5 times before moving, will have family and friends visit, have steady incomes, are good volunteers, spend more on homes, autos, and gifts, and enjoy traveling. Retirees bring many economic benefits to states. Some include staying in hotels, dining in restaurants while visiting, shopping, visiting tourist attractions, and buying gas all before deciding to move. Retired people account for 77% of the nation’s personal financial assets, have 80% of their money in savings accounts, and buy 48% of all domestic new cars. Eighty percent of all retirees own their own homes.
Ms. Giannini stated that retirees are looking for communities with a low crime rate, good hospitals, mild climate, low cost-of-living, low overall tax rate, friendly neighbors, and a major city nearby. Kentucky offers a mild climate, low cost-of-living, abundance of recreational activities, low crime rate, is geographically convenient, and offers cultural opportunities. Most retirees move to Kentucky from New York, Illinois, California, Texas, and Florida. Ms. Giannini compared Kentucky’s program to programs in Maine, West Virginia, Washington State, and Alabama.
Ms. Giannini said that currently Kentucky has eight certified retirement cities: Campbellsville, Danville, Glasgow, Madisonville, Maysville, Morehead, Murray, and Richmond. She said that ten additional cities had requested information on becoming a retirement community.
Ms. Giannini said the 800 number to obtain more information on Kentucky’s Certified Retirement Communities is 800-345-6591. She also furnished members of the Commission with a copy of Kentucky, Land of Tomorrow, A Guide to Retirement Living, a publication that won first place in the Kentucky Tourism Industry Traverse Award for excellence in marketing.
Following Ms. Giannini’s presentation there was a short question and answer period. Chairman Veazey thanked Ms. Giannini and returned to the agenda.
Chairman Veazey introduced four new members added to the Commission since the last meeting. They were as follows:
Mr. Phillip Martin, appointed by the Cumberland Valley Area Development District;
Mr. Denver Moore, appointed by the Buffalo Trace Area Development District;
Mrs. Martha Anne Shircliffe, appointed by the Lincoln Trail Area Development District; and
Mr. Claude Tiller, appointed by the Lake Cumberland Area Development District.
Chairman Veazey announced that a member had passed away since the last meeting. Mr. Virgil E. Mefford died on November 24, 2002. Chairman Veazey informed the members that a resolution in memory of Mr. Mefford was in their folders, and asked them to review the resolution. Chairman Veazey asked for a motion to adopt the resolution for transmittal to Mrs. Mefford. Ms. Mabel Ballinger so moved, and there were multiple seconds. The resolution was adopted and Chairman Veazey announced that a copy would be forward to Mrs. Mefford.
Chairman Veazey recognized Mr. Dutton for some housekeeping items and announcements. After Mr. Dutton’s remarks, Chairman Veazey announced that dinner would commence at 6 p.m. in Assembly Ballrooms I and II. Chairman Veazey adjourned the opening general session to allow the subcommittees to convene.
Chairman Veazey convened the dinner session and welcomed everyone and their guests. Chairman Veazey recognized Vice Chairman Joe Bishop to give the invocation. Chairman Veazey introduced the head table. After dinner Chairman Veazey recognized Mr. Dutton for the introduction of the legislative hosts and the speaker for the evening.
The speaker for the evening was Dr. Doug Moseley. Dr. Moseley is a retired Methodist minister, former Kentucky State Senator (1974-1986), and author of the regional best seller, There is More to Preaching, Than Just Preaching, (South Central Press, 2001). Dr. Moseley gave a very thought provoking and entertaining speech. Dr. Moseley shared with the members some of his more humorous experiences while practicing as a minister and serving as a Kentucky State Senator. Dr. Moseley expressed to the members the importance of writing down the stories of their lives for their ancestors.
Chairman Veazey thanked Dr. Moseley for giving such an entertaining address. Chairman Veazey then made several announcements regarding the next day’s activities, announced that Ms. Peggy Baldridge was elected Vice Chairman of the Taxation Subcommittee that afternoon, and thanked everyone again for coming. Chairman Veazey adjourned the dinner session until the next morning, May 9, 2003.
Following the conclusion of the subcommittee meetings on Friday, May 9, 2003, Chairman Veazey convened the closing general session at 10:15 a.m.
Chairman Veazey introduced those seated at the head table, and then recognized Mr. Dutton for some announcements.
Chairman Veazey then introduced each of the Subcommittee spokesmen who, in turn, presented their subcommittee’s report for adoption by the full membership. The following subcommittee reports were adopted by the Commission.
(Reported by Mr. Frank Carlton, Subcommittee Chairman)
On Thursday, May 8, the subcommittee heard testimony on predatory lending from Rich Seckel, Director, Kentucky Legal Services, testimony on Elder Abuse from Tim Jackson, Deputy Secretary, Cabinet for Families and Children, and testimony on Identity Theft from Harold Turner, Financial Integrity Enforcement Division, Office of Attorney General. The subcommittee also heard a debate on Torte Reform between Richard D. Lawrence, The Lawrence Firm, and Dr. Don Swikert, Kentucky Medical Association. Lastly, Nora McCormick, Office of Counsel, Cabinet for Families and Children gave a response to the State Auditor’s report, “Examination of Policies, Procedures, and Financial Activity in the Fiduciary and Guardianship Sections of the Cabinet for Families and Children.”
The Subcommittee adopted the following recommendations:
(1) That the General Assembly add additional restrictions to current predatory lending legislation;
(2) That the General Assembly update House Bill 242 for introduction in the 2004 regular session of the General Assembly;
(3) That the General Assembly form a multistate commission and develop a multistate compact to combat identity theft;
(4) That the General Assembly not add any exceptions to the “No Call Legislation”; and
(5) That the General Assembly impose controls on telephone solicitations for charitable contributions.
During the Closing General Session Mr. Bill Harned moved to amend the report to include a recommendation opposing utility deregulation. The motion was seconded and adopted.
(Reported by Dr. Phil Hulsman, Subcommittee Vice Chairman)
On Thursday, May 8, the subcommittee heard testimony from Commissioner Mike Robinson, Department for Medicaid Services. Commissioner Robinson presented information on the fiscal impact of Medicaid services on senior care, and discussed bills from the 2003 Regular Session of the Kentucky General Assembly that related to senior health care. The Department for Medicaid Services has implemented several cost containment measures to address the state’s current revenue shortfall. Some of these measures include developing an expanded supplemental drug rebate program, instituting a $2 co-pay for certain optional adult Medicaid services, and developing a fee-based system for outpatient hospital services.
Commissioner Robinson said that citizens eligible for Medicaid have increased at a rate much higher than projected over the past couple of years, thus increasing the costs for the Medicaid program and overall health care. Currently, 650,000 Kentuckians participate in Medicaid, which operates on a $4 billion budget. Commissioner Robinson concluded by stating that Kentucky needs additional revenue and fiscal relief in health care in order to address future fiscal constraints within the Medicaid program.
The subcommittee also heard testimony from Bernie Vonderheide, an advocate for nursing home reform. Mr. Vonderheide presented information relating to the quality of nursing home care. He emphasized the need for more sufficient staff in Kentucky nursing homes in order to address many of the problems within the nursing home industry. Mr. Rich Miller, Executive Director, Kentucky Association of Health Care Facilities, concurred with Mr. Vonderheide’s presentation and explained that the Kentucky legislature should prioritize health care within their legislative agenda.
The Subcommittee adopted the following recommendations:
(1) That the General Assembly advance a plan that provides prescription drug cost assistance to low-income seniors and Kentuckians with disabilities;
(2) That the General Assembly enact the provisions of House Bill 242 from the 2003 Kentucky General Assembly during the 2004 regular session;
(3) That the General Assembly restore the $250 million cut from the Medicaid budget, and restore the adult day care program to at least its former size of operation prior to the budget reductions;
(4) That the General Assembly provide permanent funding that maintains the present number of long-term care ombudsmen;
(5) That the General Assembly reauthorize the Quality Long-Term Care Task Force to formulate legislation that promotes home and community based services as well as facility services;
(6) That the General Assembly adopt a long-term care policy statement comparable to House Bill 26 introduced in the 2003 Regular Session; and
(7) That the General Assembly not accept Medicaid block grants that limit future Federal payments or limit the state’s flexibility in establishing programs under Medicaid.
(Reported by Mr. Ray Roundtree, Subcommittee Chairman)
The subcommittee heard testimony from Mr. Glenn Jennings, Deputy Commissioner, Department of Insurance, regarding legislation that passed during the 2003 Regular Session of the Kentucky General Assembly. He stated that the Department of Insurance sponsored legislation that passed was limited to housekeeping bills.
Mr. Jennings stated that the successful 2003 legislation included electronic delivery of insurance policies, required an analysis of the financial impact of mandated health benefits, changed interest rates paid on insurance policies, and updated the law regulating self-insured employer organized associations. Mr. Jennings stated that no final decisions have been made on possible legislation for 2004, but, there are several areas under consideration. He stated that they may address changes in insurance longevity tables, long-term care insurance, and credit scoring.
The subcommittee also heard testimony from Mr. Mack Bushart, Commissioner, Department of Motor Vehicle Regulation, Transportation Cabinet. Mr. Bushart addressed the subcommittee regarding efforts to try to enforce the statutory requirement for motor vehicle liability insurance, and previewed potential legislation to enforce the requirement. He stated that data shows that thousands of Kentuckians buy insurance coverage and cancel it shortly after renewing their automobile license.
Ms. Rhonda Franklin, Subcommittee staff, updated the Subcommittee on Medicare coverage of seniors as it relates to prescription drug coverage. She stated that a total review of the Medicare program is ongoing, with Congressional changes expected in July.
The Subcommittee adopted the following recommendations:
(1) That the General Assembly urge Congress to amend Medicare laws to include a prescription drug program for senior citizens, to afford persons access to drugs in order to prevent or treat chronic illnesses.
(2) That the General Assembly and the Department of Insurance be encouraged to continue efforts to increase the availability of health insurance to senior citizens in Kentucky at affordable and justifiable premiums;
(3) That the General Assembly urge Congress to increase Medicare benefits for senior citizens; and
(4) That the General Assembly enact legislation to require insurers who provide personal motor vehicle liability insurance coverage in Kentucky to file the vehicle identification number (VIN) and the name of the policy holder each month with the Department of Motor Vehicle Regulation as proposed by 2003 House Bill 191 for purposes of mandatory auto liability insurance coverage enforcement.
(Reported by Ms. Peggy Baldridge, Subcommittee Vice Chairman)
The subcommittee heard testimony from Ms. Carol Roberts, Executive Director, Kentucky Action. Ms. Roberts informed the members that Kentucky Action is a statewide coalition of organizations dedicated to reducing tobacco-related disease and death in Kentucky. Kentucky’s cigarette tax is the second lowest in the nation at three cents per pack and it has not been increased in more than 30 years. The national average for cigarette taxes is around 69 cents, with some states imposing a tax of $1.00, or more. The average cigarette tax for states bordering Kentucky is close to 40 cents per pack. A number of states have increased the cigarette tax this year and more state are poised to raise the tax in the immediate future. Ms. Roberts said studies indicate that the single, most effective way to reduce smoking and the use of tobacco products is to increase the cost of those products. She said now is the time for Kentucky to raise its low cigarette tax.
The subcommittee also heard testimony from Ms. Heather Werheim, Manage, Grassroots Advocacy. Ms. Werheim said Kentucky’s high school smoking rate is 37.4 percent, compared to the national average of 28.5 percent. Even more alarming is that Kentucky’s middle school students are smoking at more than twice the national average at 21.5 percent, compared to 11 percent nationally, and 13,400 Kentucky children become daily smokers each year. In 2001, Kentucky Action received a three-year grant from the Robert Wood Johnson Foundation. Kentucky Action is targeting the grant money towards a campaign whose purpose is to ensure a health future for Kentucky’s children by increasing Kentucky’s cigarette tax.
Ms. Werheim said tobacco-related illnesses cost Kentucky taxpayers $2.1 billion a year. It is estimated that a 75 cent increase in the cigarette tax will result in 26,000 fewer youthful smokers in Kentucky; save 28,000 Kentuckians from smoking-caused death; decrease the pregnant women smoking rate by 18 percent; save $9.6 million in state Medicaid over the next five years; save $49 million in health care costs over the next five years; and save $851 million in long-term health care costs.
Ms. Roberts added that it is estimated that state revenues would increase by at least $300 million if there is a 75 cent increase in the cigarette tax. In addition, 60 percent of Kentucky voters favor raising the cigarette tax by 75 cents. A statewide survey reported that a cigarette tax increase is supported in all areas of the state and the survey suggests that voters will even cross party lines to support the issue.
The Subcommittee adopted the following recommendations:
(1) That the General Assembly enact legislation to reform the state’s tax system to achieve a system which:
(a) is fair,
(b) is not detrimental to economic growth,
(c) compares favorably with surrounding states,
(d) is administratively reasonable, and
(e) yields adequate revenue for state government;
(2) That the General Assembly raise the excise tax on cigarettes to $1.00 per pack and impose a fifty percent tax on smokeless tobacco, cigars, rolling paper, and other tobacco products not covered by the cigarette tax;
(3) That the General Assembly enact legislation providing tax credit to those who care for the elderly in the elderly person’s home or in the caregiver’s home; and
(4) That the General Assembly eliminate the inheritance tax on Class B and Class C beneficiaries and retain the federal estate pick-up tax.
(Reported by Ms. Esther Rigby, Subcommittee Chairman)
The subcommittee heard testimony from Ms. Pam Shepherd and Ms. Sue Jeffers, Kentucky Public Transportation Association. Ms. Jeffers informed the subcommittee that by the year 2020 the senior citizen population would increase by 75 percent, which would put an additional burden on the state’s existing public transportation, particularly in rural areas. Ms. Jeffers noted that Medicaid pays around a $1.00 per mile for Medicaid recipients to use the Human Service Transportation Delivery System in Central Kentucky; a cab would charge that same person around $1.80 to $2.00 per mile.
Both Ms. Jeffers and Ms. Shepherd noted that while there are still problems implementing the system, most of the state is now running smoothly. However, they both agreed that Congress needs to be lobbied for financing a Medicare non-emergency transportation system.
Ms. Shepherd then gave an overview of the differences between transportation services offered in urban areas compared to rural areas.
Ms. Jeffers emphasized the lack of federal funding for public transit. The state’s current budget crisis has made the problem worse because now the state does not have the resources to give agencies matching money to secure the limited federal dollars that are available. She encouraged seniors to lobby the General Assembly to shift money traditionally appropriated for operating funds to matching funds.
Ms. Kathy Jones, staff, gave an overview of transportation legislation enacted by the 2003 Regular Session of the Kentucky General Assembly. She noted that of the number of transportation bills enacted, several were beneficial to senior citizens.
The Subcommittee adopted the following recommendations:
(1) That the General Assembly establish an electronic, paperless automobile insurance reporting system; and
(2) That the General Assembly enact a primary seatbelt law.
The Subcommittee reports having been given and adopted, Chairman Veazey announced the next semiannual meeting would be held November 6-7, 2003. There being no further business, the meeting was adjourned at 11:30 a.m.