The 2nd meeting of the Special Advisory Commission of Senior Citizens (the Advisory Commission) was held on Thursday, November 6, 2008, at 1:00 PM, in the Assembly Ballrooms 1 & 2 of the Capital Plaza Hotel, Frankfort, Kentucky. Lillian Rice, Chair, called the meeting to order.
Present were:
Members: Lillian Rice, Chair; Frances Baccus, Rebecca Baird, Mary Barlow, Cluster Belcher, J. T. Boling, Leon Boyd, Joyce Bruce, Ruth Bryant, Aaron Cardwell, Velma Childers, Douglas Cole, Bertha Daniels, Leon Dodge, Marsha Dufeck, Bob Elliott, Carol Fausz, Finnell Fields, Verlin Flaherty, Ed Flanagan, Jane Fugate, Rufus Fugate, Larry Gatewood, Barbara Germain, Margaret Gilland, Dell Hall, Gloria Hall, Bill Harned, Edna Hawkins, Bobby Hazen, Faye Hensley, Marty Herbert, Jim Heth, Eleanor Holbrook, Betty Huff, James Huff, Argene Jones, Gayle King, Lee King, Ray Kremer, Gayle Lawson, Gina Loxley, Phillip Martin, Pete McNeill, Denver Moore, Larry Morrow, Jerry Moser, Jack Niece, Vivian Niece, Betty Olson, Elmer Olson, Norman Pallarito, Joy Payne, Jean Phelps, Nancy Purvis, Clarence Richardson, Jeane Robertson, John Schreiber, John Searcy, Clayton Shannon, Dennis Shaw, Martha Shircliffe, Berton Sisk, Fred Smith, Martha Smith, Ted Smith, Paul Steenbergen, Donald Stethen, Pat Sutton, Ernest Taylor, Claude Tiller, Mary Trimble, Laurel True, Joan Veazey, Joe Wahlen, Joe Westerfield, Lillian Weston, Alban Wheeler, Lillian Wheeler, and Ken Willis.
Guests: Robert Vance, Secretary, Public Protection Cabinet; Charles Vice, Commissioner, Department of Financial Institutions, Public Protection Cabinet; Jay Thompson, Department of Insurance, Public Protection Cabinet; Representative Derrick Graham; Representative Carl Rollins; Dr. Renard Murray, Centers for Medicare and Medicaid Services; Marnie Mountjoy, Department for Aging and Independent Living, Cabinet for Health and Family Services; Debbie Anderson, Commissioner, Department for Aging and Independent Living, Cabinet for Health and Family Services; Chris Thompson, Department of Financial Institutions, Public Protection Cabinet; Lori Farris, Attorney General’s Office; Paul Wingate, Attorney General’s Office; Heather Clarey, Better Business Bureau; John Heltzel, Kentucky Division of Emergency Management; Pat Dressman, Campbell County Fiscal Court; Barbara Gordon, KIPDA Area Development District; Nancy Addington, Lincoln Trail Area Development District; D.J. Wasson, Department of Insurance, Public Protection Cabinet; Angela Zeek, Legal Aid of the Bluegrass; Amanda Enochs, Department of Aging and Independent Living, Cabinet for Health and Family Services; Mike Skaggs, Lincoln Trail Area Development District; Bill Cooper, Deputy Commissioner, Department of Aging and Independent Living, Cabinet for Health and Family Services; Jeremy Thompson, Office of Transportation Delivery; and Eric Perez, Office of Transportation Delivery.
LRC Staff: Sheila Mason, Kenny Bishop, Katie Carney, Adanna Hydes, Miriam Fordham, Rhonda Franklin, Chad Collins, Charlotte Quarles, Jim Roberts, Brandon White, Betsy Bailey, Cindy Smith, Jamie Griffin, Sheri Mahan, Linda Hughes, Janice Clark, Sally Everman, Rick Devers, Bud Kraft, Karen Lile, and Richard Rigney.
Chairwoman Rice welcomed everyone to the Advisory Commission’s second semiannual meeting for 2008 and introduced the head table. Chairwoman Rice advised that one new member has been appointed to the Advisory Commission since the May 2008 meeting. Chairwoman Rice advised that the member, Norietta Dickerson from Sandy Hook, appointed by the FIVCO Area Development District was not able to attend this meeting, but is planning on being at the May 2009 meeting.
Chairwoman Rice informed members that the minutes from the Advisory Commission’s May 8-9, 2008, meeting had been mailed earlier and were in their folders. She asked for any proposed additions or deletions. Chairwoman Rice asked for a motion to adopt the minutes as presented. A motion was made and seconded, and the minutes were adopted.
Chairwoman Rice introduced Robert Vance, Secretary, Public Protection Cabinet and Charles Vice, Commissioner, Department of Financial Institutions, Public Protection Cabinet. Chairwoman Rice informed the members that the two gentlemen would speak on “The Impact of the State of the Economy on Kentucky’s Seniors.” Chairwoman Rice informed members that Representative Tommy Thompson and Senator Tom Buford, co-chairs of the LRC’s Interim Joint Committee on Banking and Insurance, had been invited to join the panel but were not able to attend.
Secretary Vance thanked the Advisory Commission for the invitation to speak and began his presentation with some background information on the Public Protection Cabinet, and discussed his role as Cabinet Secretary. He explained that the Cabinet serves the state as an umbrella for a wide variety of regulatory agencies within state government, including the Department of Insurance and the Department of Financial Institutions. Sharon Clark is the Commissioner for which regulates insurance activities in Kentucky. As part of that mission, the department carries out several programs dedicated to consumer education, including the Kentucky Insurance Program for Seniors (KIPS). The KIPS program offers educational seminars, free publications and consumer guides. Secretary Vance informed the Advisory Commission that the Department of Insurance has created a special section on its web site to address specific concerns of older Kentuckians.
Secretary Vance described the responsibilities of the Department of Financial Institutions, and highlighted the department’s role as an overseer of all of state chartered financial institutions and all securities sold in Kentucky. He commended the work of Charles Vice as the Commissioner of the Department, and stressed that Kentucky banks are more stable with capital and have fewer problem loans.
Secretary Vance reported the formation of the Governor’s Economic Action Team composed of himself and several other government officials. The group is charged with assessing and reporting to the governor on the economy and its effects on the banks, housing markets, and the healthcare sector. He also mentioned a web site that has been created to be a one-stop-shop for Kentuckians, including seniors, who are struggling with the current economic downturn. The web address is www.assistance.ky.gov.
Secretary Vance then introduced Commissioner Vice, who spoke to the Advisory Commission about the state’s economic conditions, retirement and pension plans, savings and investment accounts, payday lending practices, and initiatives of the Department for Financial Institutions. Commissioner Vice mentioned that brochures and additional information would be available at the registration table for those who wish to know more. He stated that senior citizens are generally regarded as a very influential socio-economic group. He stated that in 2008, 79 million baby-boomers in the US would reach the age of 62. That group’s control of roughly $15 trillion in retirement accounts makes them a very important part of today’s economy.
One of the major concerns of the Department of Financial Institutions is fraud being perpetrated on senior citizens. Commissioner Vice used “free lunch seminars” as an example. Organizers of these events invite seniors to a free lunch or another enticement, and then offer an investment opportunity that promises big returns and little risk. Often, the actual risk and potential return at most of these events is misrepresented. The department is also concerned about the stock market and the volatility of interest rates. These have a potential to significantly impact income that is related to bonds, savings accounts and investment accounts.
Commissioner Vice stated that although economists are hesitant to refer to the current economic condition as a recession, the negative growth in the GDP in the 3rd and the estimated negative growth in the 4th quarter of 2008 points toward one. The length of the downturn is dependent upon several factors including the housing market, the auto industry, unemployment and interest rates. Commissioner Vice stated that although current economic conditions have created budget concerns, Kentucky is taking adequate steps to provide guidance and assistance for those who are facing mortgage foreclosure. One resource cited is a web site, www.protectmykyhome.org.
Commissioner Vice stated that Kentucky’s unemployment rate is currently following the same course as the rest of the nation, meaning there has been an increase in unemployment. However, there are a couple of positive forces around the state anticipated to help curb the increase, the including retooling of some existing manufacturing plants and announcements of new facilities around the state. He mentioned that Kentucky is in a positive place as an energy producing state.
Commissioner Vice stated that Kentucky is feeling the effects of the stock market’s recent volatility and dramatic swings. This has caused retirement and pension plans to suffer significant losses. However, the Treasury Department has guaranteed funds in money market mutual accounts for a period of time hoping to stabilize the markets and discourage investors from pulling their money out. Another concern is that mortgage driven products that are driving the current market are creating the liquidity crisis, even though less five percent of the mortgages and sub-prime loans in the US are experiencing problems. The common perception is that the market is less stable than it actually is, causing consumers to avoid borrowing, decreasing liquidity in the market.
Commissioner Vice addressed savings and investment accounts, encouraging investors to know their investment advisor well and to choose an investment firm with a good reputation. He also encouraged investors to develop an individual investment plan based on their specific needs, with the assistance of their investment advisor. The plan should address the investor’s investment horizon, risk tolerance, and whether the investor is interested in income or capital appreciation goals. He also suggested avoiding making dramatic changes in the investment mix, meaning stocks, bonds, or cash.
Commissioner Vice addressed Kentucky law related to payday lending practices. Currently a person can have only two loans outstanding at one time. The loans can total only $500, and the fee is limited to a maximum $15 per $100 outstanding. Payday loans in Kentucky have a term of no less than 14 days and no more than 60 days. Rollovers and renewals are prohibited in Kentucky as well.
Commissioner Vice stated that the Emergency Economic Stabilization Act of 2008 recently made some changes in FDIC insurance by temporarily increasing the basic insured amount from $100,000 to $250,000, per deposit, per insured bank. This change will only be in effect until December 31, 2009. The Commissioner stated that it is his belief that the temporary increases may actually become permanent, even if not at the current level, before they expire at the end of 2009. Another change in non-interest bearing deposit insurance, relating to personal and business accounts, is the ability to purchase unlimited insurance. One thing to remember is that banks have been given the option of opting out of the program. Commissioner Vice suggested that you contact your bank to verify their participation. The web site, www.fdic.gov contains a list of banks that do or do not participate in the program.
Commissioner Vice encouraged members to contact his office if they have any questions about investments or deposit accounts. He stressed that they cannot answer questions about specific banks; however they can provide direction on general banking and investment matters. He also encouraged members to visit the agency’s web site at www.kfi.ky.gov for more information on financial institutions, investment advisors and security firms. Commissioner Vice advised members of the Advisory Commission to contact Kelly May at kelly.may@ky.gov or call the toll free number (800-223-2579) to obtain a free copy of a newsletter that is produced by the Agency. Another resource is the Senior Scam Jam which is an event featuring booths with information and materials that speak to issues specific to senior citizen’s concerns. In addition, speakers from the agency are also available to visit and speak to groups across the state about a variety of topics related to the specific group.
Mr. Bill Harned asked, in light of the current economic climate and its impact on retirees and senior citizens in Kentucky, what is the expected impact on programs and services provided by the Department for Aging and Independent Living? Commissioner Debbie Anderson responded that the Department has seen an increase in interest and in its programs and is working hard to prepare for the influx of new enrollees, but she also expects a reduction in funding. Commissioner Anderson plans to provide more details of the Department’s progress on Friday morning.
Vice Chairman Norm Pallarito asked what the difference is with state banks and other banks. Commissioner Vice responded that the Department for Financial Institutions has oversight over all state chartered banks in Kentucky. However, the Department does not provide any oversight on federally chartered banks operating in Kentucky.
Commissioner Vice informed the Advisory Commission that there were 20 or so banks in Kentucky that participated in Fanny Mae and Freddy Mac. One bank used about 30% of their capital investing in these two programs and the other banks used a smaller percentage of capital. Hence, the impact of the financial difficulties of the two programs was not as severe in Kentucky as it was in other states.
Vice Chairman Pallarito asked what rights a client has of banks that have been bought out. Commissioner Vice responded that most of the time there is not a disruption of service to the client. He added that the client should be offered the same deposit insurance with the new bank ownership.
Mr. Bob Elliott asked how a citizen can find a listing of state charted banks versus nationally chartered banks. Commissioner Vice responded that either the word “National,” or the abbreviations ‘NA’ must be in the name of a nationally chartered bank. Otherwise it is a state chartered bank.
An Advisory Commission member mentioned that he had heard talk of a temporary change in the required minimum age to withdraw funds from retirement accounts until the current difficult economic conditions get better. The current minimum age to withdraw funds without a penalty is 59½. Commissioner Vice responded that there was talk being circulated that retirees may be allowed to withdraw a portion of their retirement, possibly up to $10,000, without penalty or a tax, but he has not received word on a final decision.
Mr. Laurel True informed Secretary Vance that the Advisory Commission has been in contact with the Attorney General regarding long-term care insurance premium regulation rate increases. Mr. True asked if public hearings could be announced when rate increases are reviewed. Mr. True also asked if the Public Protection Cabinet could work with the Attorney General’s Office regarding long-term care rate increases.
An advisory commission member commented that some long-term care policies have doubled in cost and there is worry that some companies are initially selling the policies way under cost and increasing the premiums over the years. Secretary Vance responded that the Cabinet will look at providers in addition to insurance companies raising the rates.
Chairwoman Rice introduced Mr. Jay Thompson with the Department of Insurance to address some of the questions regarding long-term care policy and rate increases reviewed by the Department. Mr. Thompson told the Advisory Commission that his department monitors insurance companies and advised that Kentucky is pretty much in the middle range nationally in regards to insurance rate increases. He addressed block plan openings, closings and switching, and indicated that his department has not noticed a reason for concern in this area.
Chairwoman Rice recognized Ms. Sheila Mason for a few announcements. After the announcements Chairwoman Rice made a few concluding remarks and adjourned the opening general session to allow the Advisory Commission subcommittees to convene.
Chairwoman Rice convened the dinner session and welcomed everyone and their guests. She recognized Mr. Pete McNeill to give the invocation. Following the invocation, Chairwoman Rice introduced those seated at the head table.
After dinner, Chairwoman Rice recognized Ms. Mason for introduction of the legislative hosts for the evening. Ms Mason recognized Representative Derrick Graham and Representative Carl Rollins. Ms. Mason also recognized guests from the Department for Aging and Independent Living and guests from the Center for Medicare and Medicaid Services from Atlanta, Georgia.
Chairwoman Rice introduced Dr. Renard Murray as the speaker for the evening’s session. Dr. Murray is the Acting Bi-Regional Administrator for the Centers for Medicare and Medicaid Services in the Atlanta and Dallas regions.
Dr. Murray thanked the Advisory Commission for the invitation to speak and also the Department for Aging and Independent Living for their assistance during his trip to Kentucky. He discussed the Centers for Medicare and Medicaid Services (CMS) and their responsibility in providing health care services for about 80 million people nationwide through their combined programs, including SCHIP (State Children’s Health Insurance Program). This makes the agency the largest health insurance provider in the nation.
Dr. Murray informed the Advisory Commission that he is in Kentucky to raise senior’s awareness of the open enrollment season for the CMS prescription drug benefit program which begins on November 15, 2008. He discussed the history of the program and its different parts and coverages through the years, as well as the variety of plans available for subscribers today.
Dr. Murray informed the Advisory Commission that currently about 45 different prescription drug benefit plans are available to choose from. If a member does nothing at all to change their plan, their coverage remains the same as the previous year. All changes become effective in January 2009. He stressed the importance of comparing the plans and making adjustments based on need, finances and lifestyle.
Dr. Murray mentioned the Extra Help Program that is provided through the Social Security Administration. Assistance under this program is provided by paying for prescription drug premiums and for some of the deductibles and co-insurances that would be available through the CMS prescription drug plan. A member qualifying for this program can make changes to their plans at any time – not just during the enrollment period. It is estimated that around 45,000 people in Kentucky qualify for the subsidy. He asked the Advisory Commission to help identify individuals who may qualify and point them toward the SSA office.
Dr. Murray advised all of the Advisory Commission members to look at the Medicare Handbook they received earlier in the year to learn about all of the prescription drug plans available in Kentucky. He advised of a 24-hours a day, seven days a week number, 800-633-4227, that Medicare provides for assistance for members. He also encouraged the Advisory Commission members to visit the Medicare web site at www.medicare.gov for more information, and to talk with their doctors about generic versus name brand drugs in their circumstance.
Dr. Murray advised that Medicare is making flu shots available to its beneficiaries. He advised members to contact their doctors to get the vaccination.
Finally, Dr. Murray discussed the new electronic prescribing technology which allows the doctor to send your prescription directly to the pharmacist electronically. This will allow the pharmacist to have your prescription ready when you arrive to pick it up. It will also eliminate the possibility of losing prescriptions, and will reduce the likelihood of errors occurring in reading and fulfilling prescriptions.
Chairwoman Rice thanked Dr. Murray for his remarks and assistance and adjourned the dinner session with a few remarks and announcements.
Following the conclusion of the subcommittee meetings on Friday, November 7, 2008, Chairwoman Rice convened the closing general session at 10:30 a.m. Chairwoman Rice welcomed members and guests to the closing session and introduced those seated at the head table. Chairwoman Rice informed members that a suggestion has been made to begin the closing general session at 10 a.m. instead of 10:30 a.m. She stated that she will discuss this possibility with staff. She then introduced Commissioner Debbie Anderson to provide an update on the Department for Aging and Independent Living.
Commissioner Anderson thanked members of the Advisory Commission for their service and the opportunity to speak with them again. Commissioner Anderson gave a PowerPoint presentation on various programs the Department has been involved with. She advised that several new programs have been added to the Department for Aging and Independent Living since July 1. Because of the magnitude of legal guardianship, one of the new programs is the Guardianship Program which includes two branches, fiduciary services and field services. Currently over 2,600 people in Kentucky are being served by the Guardianship Program.
Commissioner Anderson announced that DAIL has assumed responsibility of the Long Term Care Ombudsman Program and introduced Kimberly Baker as the new State Long Term Care Ombudsman. Ms. Baker spoke briefly of her prior work on elder abuse issues and her excitement in serving as the ombudsman for the program.
Commissioner Anderson informed the Advisory Commission that the Brain Injury Trust Fund Program is also managed by DAIL. Funding for the program comes from state general funds. She also announced that a Prescription Assistance Program will start up in March 2009 and will coordinate the many programs already in place that assists persons needing help with prescriptions.
Commissioner Anderson announced a significant increase in funding, mostly federal, for the Low Income Heating Emergency Assistance Program – up from $30.6 million last year to $75 million this year. She attributed much of the increase to the efforts of Congressman Ben Chandler. This additional funding will allow the monthly allowance to increase to $400. Regular enrollment into the program will be from November 3 to December 12, with actual funds being available from January 5 through March 31, or until the money is gone. Commissioner Anderson also mentioned the Weatherization Program which provides for long term energy efficiency measures. Both programs are administered through the Community Action Agencies.
Commissioner Anderson reminded the Advisory Commission that Medicare open enrollment starts on November 15 and runs through December 31. She encouraged everyone to start looking at their information early.
Commissioner Anderson informed the Advisory Commission of an effort to push new regulations related to the personal emergency response system. A letter is being mailed to legislators asking them to support legislation that will allow clients to designate 911 as their first call when using an emergency response system, or indicate that 911 should be called if a client’s first designated call is not reached. If the legislation passes, letters will be mailed to clients of the service that will allow them to designate 911 as their first or second call in case of an emergency.
Commissioner Anderson stated that an internal study was done within the Department for Aging and Independent Living. As a result, several changes have been made, including eliminating many of the unnecessary regulations that prevented the Department from operating on more efficient and effective level. Other changes include improved training in the overall monitoring process, allowing more flexibility with specific funding allocations, and developing levels of case management based on the need for more or less detailed management.
Commissioner Anderson stated that the Meals on Wheels Program is being restructured to stretch resources. This includes allowing different levels of face-to-face visits and waivers to allow for frozen meals, “mom’s meals” and shelf stable meals. Other changes within the Department are designed to stretch resources, including looking at a consumer directed options for the home care programs, eliminating the number of case managers each client utilizes, and a variety of other possible changes to be implemented within the next several months. The Department is also looking at eliminating duplication of services among programs. This may prove to be controversial with regard to the decisions recipients will be forced to make as they choose the programs they participate in.
Commissioner Anderson reminded the advisory commission that several programs within the Department for Aging and Independent Living had to be cut back this past year due to a decrease in funding. She indicated that several steps to reevaluate functions and programs and additional funding are being studied and hopes to have more information for the Advisory Commission at its Spring 2009 meeting. If more cuts are necessary all programs will be on the table for discussion.
Mr. Doug Cole asked oversight is in place within the Guardianship Program to guard against misappropriation of funds. Commissioner Anderson responded that the Department has numerous steps in place regarding guardianship funds oversight. She stated that two people are present in an open, visible area when program checks arrive. All checks are verified, logged in and double-checked for accuracy. She stressed that the Department has a strict safeguard process in place. She added that the Department had a recent audit performed by the state auditor, Crit Luallen, and according to the report, the only thing of concern was understaffing.
Ms. Jeane Robertson asked what qualifications local guardians have. Commissioner Anderson responded that all guardians across the state are government employees through the Department for Aging and Independent Living.
Ms. Robertson asked if a person could have more than one guardian. Commissioner Anderson responded that not enough guardians are presently employed to allow anyone to have more than one guardian. She mentioned that the current average caseload for guardians is approximately 60 cases.
Ms. Robertson asked how a person is placed under guardianship. Commissioner Anderson responded that all guardianship cases received by the Department are determined through a very judicious process that requires more than a simple request to be placed in the Program.
An advisory commission member asked if there are other guardianship programs. Commissioner Anderson responded that there are private guardianship programs and one of them is Guardia Care.
Vice Chairman Pallarito asked how the Department would be affected if a Special Session is called to address budget cuts and new revenue generating options. Commissioner Anderson responded that she doesn’t know how the Department would be affected, but she does know that currently every program would be on the table for budget cut review. Mr. Bert Sisk commented on how imperative it is for funding to senior citizen centers not to be cut.
Mr. True commented that he is concerned that people are disillusioned to join a waiting list for in-home services due to the size of the list. Commissioner Anderson responded that could be one reason the waiting list numbers are lower for that time frame, however, historically April and summer months are lower for in-home services.
An Advisory Commission member asked if the department accepts waiver requests for certain services. Commissioner Anderson responded that the department does accept waivers for certain services, however, all questions must be answered thoroughly on the form or else it will be returned.
An Advisory Commission member asked if frozen meals are allowed to be used in the in-home delivery service. Commissioner Anderson responded that every year KIPDA submits a waiver to distribute frozen meals.
Chairwoman Rice thanked Commissioner Anderson for her time and insightful information. Chairwoman Rice and Commissioner Anderson informed the Advisory Commission that a copy of the PowerPoint presentation would be e-mailed to all members with an e-mail address on file.
Chairwoman Rice introduced each of the subcommittee spokespersons, who, in turn, presented their subcommittee’s report for adoption by the full membership. The advisory commission adopted the following subcommittee reports.
Subcommittee on Consumer Affairs
(Reported by Claude Tiller, Subcommittee Chair)
On Thursday afternoon, Commissioner Charles Vice of the Department of Financial Institutions (DFI) and Chris Thompson, Compliance Branch Manager (DFI) provided a briefing and follow-up on the current financial market situations. Commissioner Vice presented DFI initiatives to increase consumer protection.
Following Commissioner Vice’s comments, the subcommittee had presentations from Lori Farris and Paul Wingate of the Attorney General’s Office, Consumer Protection Division; Heather Clarey of the Better Business Bureau and General John Heltzel of the Kentucky Division of Emergency Management. They spoke on services provided to seniors and consumers after natural disasters. After the presentations there was a panel discussion on proactive measures that could be taken to inform and protect senior consumers in natural disaster aftermath.
On Friday morning the Subcommittee reconvened to establish and finalize recommendations to bring before the Special Advisory Commission of Seniors Citizens for approval and submission to the 2009 General Assembly.
1) The Kentucky General Assembly should increase state funding by at least 20 percent for each year of the 2010-2012 biennium for the Area Agencies on Aging to support senior programs and by joint resolution to endorse as a goal an equal or greater increase for each year of the 2012-2014 biennium.
2) The 2009 Kentucky General Assembly should significantly increase taxes on tobacco products as an additional source of revenue for services to Kentuckians. It is further recommended that a minimum of $.05 of increased tax revenue be dedicated to senior services.
3) That the 2009 Kentucky General Assembly enact the comprehensive legislative proposal regarding identity theft (same as 2008 House Bill 553) to be submitted by the Consumer Protection Division of the Attorney General’s Office.
4) The 2009 Kentucky General Assembly should enact legislation to require the Department of Financial Institutions to develop a state wide data collection system funded by lender fees. The system shall be utilized by lenders to ensure no borrower can exceed maximum borrowing limits as provided by state law.
A motion to adopt the report and recommendations was made and seconded, and passed on a voice vote.
Subcommittee on Health and Human Services
(Reported by Ms. Edna Hawkins, Subcommittee Chair)
The Health and Human Services Subcommittee received a presentation from Pat Dressman, Director of Human Services for the Campbell County Fiscal Court; Barbara Gordon, Social Services Director for KIPDA; and Nancy Addington from Lincoln County ADD. The three focused on the Meals on Wheels Program. The Title III home delivered meals program is federally funded while the Homecare Meals Program is state funded. The programs are facing a number of issues including increasing food and transportation costs, a decrease in volunteers to deliver meals, regulatory and policy barriers, and decreased and stagnant funding. According to the presenters, the meals program is experiencing an increase in need and rising costs overall.
The subcommittee then heard from Commissioner Deborah Anderson from the Department of Aging and Independent Living who discussed housing options for seniors and the factors that should be considered in making housing decisions. In order to make informed decisions, seniors should consider the likelihood of moving more than once as they age and their needs change; the types of housing options available; personal factors; legal issues; and, the financial resources available. The level of care needed by a senior may determine what type of housing is most appropriate. Options for housing include home care; independent living and retirement communities; assisted living; personal care homes; family care homes; and, intermediate care facilities and nursing homes.
During the session on Friday, the subcommittee discussed and formulated the slate of legislative recommendations. The subcommittee's legislative recommendations are as follows:
(1) Urge the 2009 General Assembly to increase funding by 20% to the Department for Aging and Independent Living to provide services to seniors and continue to look for additional revenue sources.
(2) Urge support of the Area Agencies on Aging and Independent Living in the development of non-traditional service delivery systems for meals and other services.
(3) Support legislation to establish a certification process for personal care services agencies.
(4) Urge the 2009 General Assembly to significantly increase the tax on tobacco products to maintain current levels of coverage of the Medicaid program and to improve the availability and accessibility of health services to Kentuckians.
A motion to adopt the report and recommendations was made and seconded, and passed on a voice vote.
Subcommittee on Insurance
(Reported by Barbara Germain, Subcommittee Chair)
The Subcommittee on Insurance discussed long-term care insurance policies and the impact of a “return of premium policy” and the services provided by the Kentucky State Health Insurance Assistance Program (SHIP).
D J Wasson and Jay Thompson, Department of Insurance, discussed long-term care insurance and the impact of requiring insurers to offer return of premium on long term care policies.
Angela Zeek, Legal Aid of the Bluegrass; Marnie Mountjoy, Branch Manager and Amanda Enochs, Division of Quality Living, Department of Aging and Independent Living discussed SHIP which provides all Medicare eligible individuals information, counseling and assistance on health insurance matters. It also provides a system of referrals to appropriate Federal and State departments or agencies that provide assistance with problems related to health insurance coverage.
The Subcommittee adopted the following recommendations:
1) Urge the General Assembly to provide continuation funding at the current level for Area Agencies on Aging to support Senior Programs due to the current economic climate, but urge the General Assembly to increase much needed funding to at least 5% when the economy improves.
2) Request the General Assembly require long-term care insurance carriers to submit rate increases to the Attorney General, as well as the Office of Insurance, to allow intervention by the Attorney General as needed.
3) Urge the General Assembly to continue to address the state employee and other state supported retirement system funding including insurance benefits.
4) Urge the General Assembly to fund marketing efforts to advertise the toll-free numbers for Kentucky Resource Market.
A motion to adopt the subcommittee’s report and recommendations was made, seconded, and passed on a voice vote.
Subcommittee on Taxation
(Reported by James Huff, Subcommittee Chair)
On Thursday Charlotte Quarles, taxation subcommittee staff person went over the 2007 version of Representative Carolyn Belcher’s Elder Care Credit bill with the subcommittee. The bill was not introduced during the 2008 regular session.
It was decided that the bill previously drafted was hard to understand and to explain. Ms. Quarles offered some suggestions as to how the draft could be amended to make it more straight forward. Several changes were made to the draft during the meeting to expand the credit to those persons who care for a chronically ill person regardless of the person’s age. The credit shall be equal to 10% of the amount of qualified expenses incurred with an annual cap of $500.
Mr. Huff reported that he had been in contact with Representative Tommy Thompson and is hopeful that he will agree to sponsor the legislation.
Ms. Quarles also gave a power point presentation on the state income tax credits that will be available to consumers beginning January 1, 2009 for purchases of energy efficient equipment such as geothermal heat pumps, additional insulation, and energy efficient windows and doors.
The taxation subcommittee has the following recommendations:
1) That the General Assembly increase state funding for Area Agencies on Aging to support senior programs at least 20% by looking for new funding sources.
2) That the General Assembly enact legislation to increase the cigarette tax and earmark 2 cents per pack senior services.
3) That the General Assembly enact legislation to provide a caregiver income tax credit to those who care for a chronically ill individual in that person’s home, or in the caregiver’s home.
A motion to adopt the subcommittee’s report and recommendations was made, seconded, and passed on a voice vote.
Subcommittee on Transportation
(Reported by Joe Wahlen, Subcommittee Vice Chair)
The Subcommittee on Transportation began its meeting by hearing testimony from Mr. Mike Skaggs, Transportation Planner, from the Lincoln Trail Area Development District on its overview of the transportation delivery. Mr. Skaggs discussed the demographics of the Lincoln Trail Area Development District and cited that 37% of the population is 85 or older, which is about the national average. Mr. Skaggs said that all 8 counties in the Lincoln Trail have some form of public transportation.
The Transit Authority of Central Kentucky (TACK) is the main provider of public transportation services. In areas where other types of public transportation exist the TACK services are limited to senior and handicapped individuals.
In closing Mr. Skaggs said discussed proposed transportation services within the district which included an east-west route between Elizabethtown and Fort Knox and the possibility of a passenger rail system between Louisville and Elizabethtown.
Next, Deputy Commissioner Bill Cooper from the Department of Aging and Independent Living, discussed the new organizational changes to the Department and gave a general overview of the Department’s services. Thirty-four percent of the aging services’ expenses are transportation related. The funding for those costs is limited to monies provided by the Older Americans Act Title III. Many of the programs funded by the Older Americans Act have specific guidelines for the expenditure of transportation activities which may limit the ability to provide some services.
On Friday morning Jeremy Thompson and Eric Perez from the Office of Transportation Delivery discussed recent appropriations and changes in the Kentucky’s Human Transportation Delivery System. Mr. Perez reviewed the public transportation programs which currently operate in Kentucky and discussed the New Freedom program recently enacted by Congress for some additional assistance to public transportation.
Mr. Thompson discussed the Medicaid broker program and provided information on the bid system for the brokers. He reviewed the Medicaid transportation program for each region of the Commonwealth and pointed out the regions which were going to use new brokers. The brokers have contracts for one year which are renewable by the Transportation Cabinet for an additional year up to a total of five years.
In closing the Subcommittee reviewed and updated its recommendations and dropped the recommendation on prohibiting the use of cell phones. Our recommendations are as follows:
1. Strongly recommend the General Assembly to increase state funding for Area Agencies on Aging to support Senior Programs by at least 20% for each year of the 2008-10 biennium.
2. Recommend that the General Assembly appropriate sufficient funds to ensure available federal matching funds for the use in the state's public transportation programs. And,
3. Recommend a procedure be developed to register all-terrain vehicles to provide law enforcement and property owners the opportunity to identify ATVs being operated in violation of the law. The registration system should continue to prohibit use of ATVs on public roadways.
A motion to adopt the subcommittee’s report and recommendations was made, seconded, and passed on a voice vote.
Vice Chairman Pallarito made a motion to combine all of the subcommittees’ recommendations relating to the Area Agencies on Aging funding into one recommendation. He suggested using the recommendation from Consumer Affairs and rewriting it. He added that the reason for the motion was that since every subcommittee wants to make the recommendation, if it was consolidated as one recommendation from the advisory commission it might have more of an affect. Mr. Elliott seconded the motion, however, commented that he believes the General Assembly will dismiss the 20% increase request. Mr. Elliott added that he is ok with the recommendation still having a request for an increase in funds and with consolidating it into one recommendation; however, he believes a lower number or percentage would be a more reasonable amount. Mr. Elliott also commented that the recommendation should involve a phrase that there should not be any further reduction in funds to the Area Agencies on Aging.
Mr. Douglas Cole asked how the General Assembly would get the raised revenue.
An advisory commission member asked if the recommendation could be deferred to the Executive Committee to write a proposal for presentation to the full membership at the May meeting.
Vice Chairman Pallarito withdrew the motion to combine the recommendation and the second was also withdrawn.
Vice Chairman Pallarito made a motion to request the Executive Committee draft a recommendation relating to the funding for Area Agencies on Aging to submit to the full advisory commission to approve to send to the General Assembly. The motion was seconded by Mr. Pete McNeill.
Mr. Bill Harned commented that if the advisory commission waited to adopt this proposed recommendation from the Executive Committee then the transmittal of the recommendation wouldn’t be received by the General Assembly in time. He added that he would rather not hold up transmittal of the recommendation to the General Assembly.
Mr. True commented that the cigarette tax could be an avenue the advisory commission could use to supply the Area Agencies on Aging with the funds the recommendation is requesting. He urged that the advisory commission decide on a plan of action regarding the recommendation today or as soon as possible.
Mr. Harned suggested the advisory commission’s Chair and Vice Chair finalize a recommendation incorporating the funding increase for Area Agencies on Aging. Ms. Robertson stated that she supports this recommendation.
Ms. Robertson commented that by asking for a 20% increase in funding would be to cover existing the shortfall within Area Agencies on Aging and also to bring the funding back up to par from cuts experienced in budgets past.
Vice Chairman Pallarito withdrew the motion to have the Executive Committee review and draft a recommendation for consideration by the advisory commission. The second was also withdrawn.
Mr. Harned made a motion to allow the advisory commission’s Chair and Vice Chair to draft a recommendation for inclusion in the final report submitted to the General Assembly. The motion was seconded and passed.
*The discussion on the final recommendation of the advisory commission was intermittent and the speakers were not identified by name.
Chairwoman Rice made a few announcements and thanked all for taking the time to attend the November meeting. She announced that the next semiannual meeting was tentatively scheduled for May 7-8, 2009. There being no further business, the meeting was adjourned.