Long-term care bills
pass committee

The proposals would provide
tax credits for insurance
premiums and a $70 per diem

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By Helen Altonn
haltonn@starbulletin.com

Patrick Boland said he wanted to "put a face" on proposed legislation to establish a long-term care social insurance program in Hawaii.

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It was the face of his wife, Carolina. At age 49, she began suffering a prolonged illness with a neurodegenerative disease, he said. She died six years later.

Boland told the House Health and Human Services Committees yesterday how her condition deteriorated as the disease progressed. He hired a nurse to care for her while he worked and St. Francis Hospice provided additional help.

Financial stress was just one of many on the family, he said. The $70 a day that would be provided in House Bill 1616 wouldn't have covered all expenses, but would have been a big help, Boland said, pointing out thousands of Hawaii families are experiencing a similar plight.

The committees passed the long-term care financing measure, HB 1616, to the House Finance Committee, as well as HB 90. That bill would provide a tax credit of $2,500 or 50 percent of the amount of long-term care insurance premiums paid, whichever is the lesser amount.

Rep. Lynn Finnegan (R, Mapunapuna-Foster Village) asked why both plans couldn't be adopted to help low-income families and those who want more coverage through private insurance.

A tax official said it would be "an accounting nightmare." But Finnegan said opinions are divided on a solution to long-term care costs "and we don't see a coordinated effort to solve the problem."

Rep. William "Bud" Stonebraker (R, Kalama Valley-Hawaii Kai) voted against the social insurance plan, saying he favors HB 90 to provide immediate help to people.

HB 1616 resulted from recommendations to the Legislature from a Temporary Long Term Care Trust Fund board of trustees. Last year's Legislature passed a bill to create the board to administer a long-term care financing program and establish a fund for it.

Legislators also are considering an administration bill to phase in a tax credit over three years equal to 30 percent of long-term care insurance premiums.

Former first lady Vicky Cayetano, who lobbied hard last year for "Care Plus" legislation, was among those attending yesterday's hearing to show her support.

Under the proposed bills, a $10 monthly tax would be imposed per person, with benefits beginning at $70 per day. The tax would increase in steps, reaching $24 per month in 10 years; benefits would increase to $83.58 per day.

The state Tax Department questioned the tax plan, saying it supports the administration's tax credit bill, HB 1228.

House Health Chairman Dennis Arakaki (D, Kamehameha Heights-Kalihi Valley) pointed out a tax credit would only help those who can afford to buy long-term care insurance.

The Association of Insurance and Financial Advisors said the proposed plan "helps today's seniors at the vast expense of those aged between 30 and 50 years old" and would "create an age discrimination system."