$10 tax issue stalls
long-term care plan

Supporters want an extra cushion
for the graying population

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By B.J. Reyes
Associated Press

A measure to establish a state-run long-term care program remains alive in the House but stalled in the Senate.

The House Finance Committee heard testimony yesterday on a measure to develop the program based on a mandatory $10 monthly tax of workers who earn at least $10,000.

The amended proposal is more income-sensitive than the original version, which would have levied the tax against all workers over age 25 regardless of income level.

A similar bill was bottled up in the Senate last week by Health Chairman David Matsuura. He said the complexity of how to collect the $10 monthly tax was too burdensome for lawmakers to craft language this late in the session.

The differences in the bills would have to be worked out in a House-Senate conference committee in April, but Matsuura said he is confident that the $10 monthly tax will not pass.

Both bills contain provisions that would establish a board of trustees charged with developing the program and finding a way to fund it.

"We don't see this bill as the panacea that is going to cure everything, but it's a start," said Roland Halpern, a lobbyist for Faith Action for Community Equity, a coalition of 24 religious groups including churches and temples.

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

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.

"There is too much uncertainty, and establishing enabling legislation for the board of trustees, the financing of a program and the benefits fund is, in our opinion, jumping the gun," said Shirley Wong of the Association of Insurance and Financial Advisors. "Until there are more definitive parameters, this policy is premature."

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