sb 0402

AN ACT establishing a committee to study long-term care funding and making an appropriation therefor.

SPONSORS: Sen. Johnson, Dist 3; Rep. Rogers Johnson, Rock 25

This bill establishes a committee to study long-term care funding, including whether long-term care insurance is a viable option for the state of New Hampshire. The bill makes an appropriation from the health care fund for the purposes of the committee.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

AN ACT establishing a committee to study long-term care funding and making an appropriation therefor.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Statement of Intent. The general court recognizes that funding for long-term health care is one of the most important fiscal issues currently being faced by the state. With rising health care costs, a serious shortage of health care workers, and rapidly increasing numbers of elderly citizens, the demands on state finances for the funding of long-term health care have grown particularly acute. One possible method of addressing this problem is through the use of long-term care insurance. Therefore, the general court hereby establishes a committee to obtain the information necessary to determine whether the use of long-term care insurance to solve the long-term care funding problem is a viable and desirable option for the state of New Hampshire.

2 Committee Established. There is established a committee to study the issue of long-term care funding.

(a) Five members of the senate, one of whom shall be from the long-term rate advisory committee established in RSA 151-E:6-a and one of whom shall be from the long-term care institute established in RSA 126-L, appointed by the president of the senate.

(b) Five members of the house of representatives, one of whom shall be from the long-term rate advisory committee established in RSA 151-E:6-a and one of whom shall be from the long-term care institute established in RSA 126-L, appointed by the speaker of the house.

II. The committee may conduct hearings, retain independent consultants, and solicit testimony from any source the committee deems relevant.

III. Members of the committee shall receive mileage at the legislative rate when attending to the duties of the committee.

4 Duties. The committee shall review the issue of long-term care funding in New Hampshire. The committee's study shall include, but not be limited to, whether long-term care insurance is a viable and desirable option for the state of New Hampshire.

5 Chairperson; Quorum. The members of the study committee shall elect a chairperson from among the members. The first meeting of the committee shall be called by the first-named senate member. The first meeting of the committee shall be held within 30 days of the effective date of this section. Six members of the committee shall constitute a quorum.

6 Report. The committee shall report its findings and any recommendations for proposed legislation to the senate president, the speaker of the house of representatives, the senate clerk, the house clerk, the governor, and the state library on or before December 15, 2002.

7 Appropriation. The sum of $75,000 is hereby appropriated to the committee for the biennium ending June 30, 2003, for the purpose of retaining independent consultants. Notwithstanding any other provision of law, these funds shall be from the interest earnings of the health care fund established in RSA 167:70.

AN ACT establishing a committee to study long-term care funding and making an appropriation therefor.

The Legislative Budget Assistant indicates this bill will increase state restricted expenditures by an indeterminable amount in FY 2002 and FY 2003. There will be no fiscal impact on state, county and local revenues or county and local expenditures.

This bill appropriates $75,000 for the biennium ending June 30, 2003 from the principal balance in the Health Care Fund to the Committee to Study Long-Term Care Funding for the purposes of this act.

This bill establishes a study committee authorized to retain independent consultants. This bill appropriates $75,000 from the Health Care Fund for the purpose of retaining consultants. The committee may, with approval of the Legislative Fiscal Committee, draw additional money from the Health Care Fund. The cost of the consultant(s) cannot be estimated until the Committee selects a consultant and determines scope of services. Currently, interest on the Health Care Fund is used to fund grants for community health care initiatives. A reduction in the principal balance of the Health Care Fund would result in a reduction in the interest available for the community health care grants.