State Senate OKs fund to
aid in long-term care

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By Pat Omandam
pomandam@starbulletin.com

As the oldest daughter, Natividad T. Lagaso moved her 87-year-old mother, who suffers from dementia, into her Aiea home in 1997 because she could no longer take care of herself.

But her mother's condition worsened, forcing the family last year reluctantly to move her to an elderly care home at a cost of $3,000 a month. Now, expenses are fast depleting family funds.

As a result, Lagaso strongly supports legislation that creates a state-sponsored long-term health care benefits fund to alleviate some of the financial burdens faced by families like hers.

"It is long overdue," she said.

"With the current population explosion in the elderly sector, for the sake of the citizens of Hawaii, for the sake of the younger generations who will not be able to financially and physically care for their elderly at home due to social and economic constraints, I urge you to support the legislation," said Lagaso in testimony to lawmakers last month.

Yesterday, the state Senate approved Senate Bill 2416, Senate Draft 2, which creates a long-term care fund to help Hawaii's growing elderly pay for their expenses.

Last week, the state House approved a similar version, House Bill 2638, House Draft 1. But House lawmakers delayed the program's effective date to 2050 from 2004 while they continue to discuss the plan.

Vicky Cayetano, the governor's wife, spearheads the public lobbying effort for what's dubbed the "Care Plus" legislation. She talked about the plan yesterday at a luncheon in Waikiki.

The plan calls for a $10-per-month tax on every worker between the ages of 26 and 92. Opponents say it hurts people more than helps them.

They argue the tax comes at the worst time for Hawaii's economy and it is not needed because private long-term care insurance is affordable and available.

Under the plan, after a 10-year vesting period, those who qualify can receive about $70 per day for an entire year in long-term health care assistance. Medicaid currently covers long-term care, but the costs for it are rising and have prompted the state to search for an affordable plan that ensures long-term financial assistance will be there when needed.

Senate Minority Leader Sam Slom (R, Hawaii Kai), in debate on the measure yesterday, called the bill "a fraud and a scam." He said this week the "all-out effort" to pass the bill was primarily because of the First Lady's involvement.

"We should be ashamed if we pass this out," Slom said.

Senate Minority Floor Leader Fred Hemmings (R, Waimanalo) added the responsible thing would have been to kill the bill because there is adequate coverage by private insurers.

For example, a 50-year-old can get a $25 per month private policy that will provide immediate coverage and would not have to wait 10 years under the proposed law, he said.

"This whole initiative is a cruel hoax on the elderly in our community who think they are going to get something for nothing, who think they're going to get coverage for $10," Hemmings said.

But others disagree. Joan White, vice president of Healthcare Association of Hawaii, said ideally private insurance would be the best answer, but so far private polices have not come close to filing the need. The "Care Plus" program provides an alternative to the rising cost of Medicaid, and helps families from exhausting their life savings to pay for such care, she said.

"This bill represents a simple, effective, low-cost private long-term care financing plan that puts consumer choice at its center," White said.

The state Commission on the Status of Women, the Hawaii Long Term Care Association, the American Association of Retired Persons-Hawaii, and other groups also support the plan.

Marilyn Seely, director of the state Executive Office on Aging, said there are 30,000 older adults with limitations in Hawaii that require some level of assistance. Those numbers will increase dramatically by 2020, she warned lawmakers.

"The proposed plan will benefit families, many of whom will be responsible for caring for grandparents, parents and children," Seely said.

"With a long-term care plan, they will not be forced to choose between paying for a child's education or a parent's care."

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