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Other Views
THERE is a widespread misconception that I favor gambling on its merits. In fact, I have serious reservations about allowing gaming in Hawaii, but the coming crisis in long-term care demands that we explore every potential solution. Gambling can fund
long-term careThat's why I suggested the legalization of limited gambling in Hawaii.
Our residents are among the top three states in total life expectancy at 78.9 years. By 2020, one out of every four Hawaii residents will be 60 years or older -- or about 20 percent of the population.
Half of all people aged 85 and older need long-term care (assistance with daily living). The increase in that population will be 286 percent by 2010 -- to over 40,000 people -- and will increase 395 percent by 2020.
Today, the average cost of long-term care is $213 per day in a skilled nursing facility; $180 in an intermediate care facility. That adds up to $65,700 per year or more.
Who pays? In Hawaii, 85 percent of the costs are borne by family and friends. In fact, most families deplete their assets within a year and are forced to apply for Medicaid or Medicare, which doesn't cover everything.
The overruns are pulled out of the state general fund budget by cutting back on other services, such as education.
Becoming a ward of the state is no longer an attractive option. The state now now treats such assistance as a loan, not a grant. As such, the family's assets can be later claimed to repay the state.
Do we wait until our families begin to consider suicide as a means to solve the problems associated with aging, as has already happened in Pearl City earlier this year? Or do we allow our seniors to enroll in inadequate long-term care insurance plans that still leave family members trying to pay a $9,000 per month bill, as one Maui family has experienced?
That's why I favor a state income tax refund for people who purchase adequate long-term care insurance, which helps families cover long-term care costs and protects their hard-earned assets.
The state will need to establish a trust fund of $400 million or more in order to generate sufficient interest earnings to cover the refunds.
WHERE can we find the new money for the trust fund? Well, if we allow four gaming licenses at $100 million each, that will provide the initial money. We can then take a percentage of the annual revenue of each licensee and place it in the trust fund to cover future increases in insurance premiums.
Or we can sit back and let our families self-destruct, telling ourselves we did good because we protected people from the evils of gambling. I would welcome a more palatable choice.
Calvin K.Y. Say is speaker of the state House of Representatives.