House committee OKs
health care plan

The 6-1 vote allows the state-run
long-term care plan to advance

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By B.J. Reyes
Associated Press

The House Health Committee advanced yesterday the Senate version of a bill establishing a state-run long-term care program that would be funded by a mandatory $10 monthly tax on employees in Hawaii over age 25.

The measure passed 6-1, with opposition from Rep. William Stonebraker (R, Kalama Valley-Portlock), who criticized the program as a means of forcing people to buy long-term health insurance. "This is basically making a choice for people," he said. "What this does is, it lessens our freedom."

Opponents have labeled the program a hoax and a scam, saying private insurance policies are affordable and offer more care than the state's proposed program.

Supporters, who include first lady Vicky Cayetano, say the program is needed as the state's population grows older and becomes unable to afford standard long-term insurance policies.

The program would, after a 10-year vesting period, pay the maximum benefit of $70 a day for long-term care services for up to 365 days. The program, known as CarePlus, would be overseen by a board of trustees that would be in charge of determining how the mandatory tax would be collected.

Rep. Bob McDermott (R, Salt Lake-Aliamanu-Aiea) said he supports the program but would like to see it ultimately placed in the hands of a private company to avoid government bureaucracy.

Lawrence Nitz, a University of Hawaii political science professor and consultant to the Executive Office on Aging, said the program could potentially be turned over to a private company through the bidding process.

Stonebraker said he also was concerned that the mandatory tax, after just 10 years, could generate close to $1 billion that would be sitting in a special fund and subject to "misuse and abuse."

The measure approved yesterday -- Senate Bill 2416, Senate Draft 2, House Draft 1 -- now goes before the House Finance Committee.

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On the Net:
Hawaii State Legislature: www.capitol.hawaii.gov

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