OLR Research Report


May 15, 2002

 

2002-R-0496

LEGISLATION AFFECTING SENIORS -PRELIMINARY REPORT

 

By: Helga Niesz, Principal Analyst

Robin Cohen, Principal Analyst

SB 27 (SA 02-1)

AN ACT CONCERNING QUALIFYING INCOME FOR PURPOSES OF CERTAIN STATE PROGRAMS

This bill excludes cash payments and the value of stock distributed to individuals in connection with Anthem, Inc. 's conversion to a stockholder-owned company from consideration in determining income eligibility for the following programs:

1. Connecticut Pharmaceutical Assistance Contract to the Elderly and Disabled (ConnPACE),

2. state-reimbursed additional property tax exemption for veterans,

3. elderly property tax freeze,

4. rental rebates for elderly and totally disabled people,

5. property tax credits for elderly and totally disabled homeowners (circuit breaker),

6. local-option additional property tax exemptions for veterans and totally disabled and blind people, and

7. local-option property tax relief for elderly and totally disabled people.

For stock distributions to be excluded, the person receiving the stock must sell it in the tax year during which it is distributed or the two following tax years. The exclusion is limited to the stock's value on the distribution date and does not cover any gains accrued between the distribution date and the sale date.

sSB 213

AN ACT CONCERNING THE PREVENTION OF INFLUENZA IN NURSING HOMES

This bill requires the public health commissioner to adopt regulations for the prevention of influenza and pneumococcal disease in nursing homes. The regulations must assure that each nursing home patient is immunized annually against influenza, and against pneumonia according to recommendations of the National Advisory Committee on Immunization. The regulations must also provide appropriate exemptions for patients (1) for whom immunization is medically contraindicated or (2) who object on religious grounds.

AN ACT CONCERNING NOTICE AND PUBLIC HEARING PRIOR TO A NURSING HOME CLOSURE

 

 

The bill permits the DSS commissioner to hold a public hearing on such applications and makes hearing procedures for CON applications involving capital expenditures applicable to them. It changes the current law by making hearings in the latter situation permissive, rather than mandatory.

Currently, there is a CON moratorium on new nursing home beds until June 30, 2007, with certain exceptions. This bill permits DSS to approve one CON request for no more than 20 beds for the provision of lifetime nursing home services to residents. The applicant must be a licensed nursing home and cannot participate in the Medicaid or Medicare programs. It must (1) admit residents and provide health care without regard to their income or assets and (2) demonstrate to DSS's satisfaction that it is financially able to provide lifetime care without Medicaid participation.

Under the CON program, DSS reviews a facility's (1) transfer of all or part of its ownership or control prior to licensure; (2) introduction of any additional function or service into its program of care or expansion of an existing function or service; or (3) termination of a service or substantial decrease in its total bed capacity. The facility seeking to do any of these must file a CON application beginning with a letter of intent, using DSS forms and instructions. If the application is approved, the CON is granted.

This bill requires the consumer protection commissioner to adopt regulations requiring pharmacies to establish quality assurance programs designed to detect and prevent prescription errors. The bill defines a "prescription error" as an act or omission of clinical significance relating to the dispensing of a drug that results in, or may reasonably be expected to result in, a patient's injury or death. In addition, the bill requires each pharmacy (1) to post signs and include notices on receipts or in prescription packaging informing consumers of a way to report prescription errors and (2) keep records about prescriptions errors.

EFFECTIVE DATE: October 1, 2002

sHB 5166

AN ACT CONCERNING THE LONG-TERM CARE ADVISORY COUNCIL

This bill requires the Long-Term Care Advisory Council (LTCAC) to seek recommendations from people with disabilities or people receiving long-term care services who reflect the state's socioeconomic diversity.

It also adds eight new members to the 19-member LTCAC. They are (1) a personal care attendant appointed by the House speaker; (2) the president of the Family Support Council or his designee; (3) someone who, in a home setting, cares for a person with a disability, appointed by the Senate president pro tempore; (4) three people with disabilities, one each appointed by the House and Senate majority leaders and the House minority leader; (5) a legislator who is a member of the Long-Term Care Planning Committee; and (6) a nonunion home health aide appointed by the Senate minority leader.

The bill also makes some minor and technical changes regarding some of the existing council members. It puts the state president of AARP (formerly known as the American Association of Retired Persons) himself or his designee on the council, instead of only his appointee. It also puts the president of the Connecticut chapter of the Connecticut Alzheimer's Association, instead of the executive director of the Connecticut Alzheimer's Association, on the council. And it makes corrections in the names of several entities represented on the council.

The LTCAC, composed of long-term care providers and consumer advocates, advises the interagency Long-Term Care (LTC) Planning Committee which is composed of representatives from executive agencies and legislators. The LTC Planning Committee's charge is to exchange information on long-term care issues, coordinate long-term care policy development, establish a statewide long-term care plan for the elderly and others in need of long-term care and revise it every three years, and study related issues.

SB 96

AN ACT CONCERNING THE TREATMENT OF CERTAIN DISTRIBUTIONS FROM MUTUAL INSURANCE COMPANIES FOR PURPOSES OF THE RENTAL REBATE AND CIRCUIT BREAKER TAX RELIEF PROGRAMS

This bill excludes cash payments and the value of stock distributed to individuals due to a mutual insurance company's conversion to a stockholder-owned company from inclusion as income in determining eligibility for the following programs: (1) rental rebates for elderly and totally disabled people, and (2) property tax credits for elderly and totally disabled homeowners (circuit breaker).

For stock distributions to be excluded the person receiving the stock must sell it in the tax year during which it is distributed or the two following tax years. The exclusion is limited to the stock's value on the distribution date and does not cover any gains accrued between the distribution date and the sale date.

This bill specifically does not cover payments from Anthem, Incorporated, which are exempted by separate parallel legislation that was enacted into law, Special Act 02-1.

EFFECTIVE DATE: Upon passage and applicable to property tax assessment years starting on or after October 1, 2001 and taxable years for individuals starting on or after January 1, 2001.

sSB 130

AN ACT CONCERNING NURSING HOME INSPECTIONS

This bill requires the DPH dual nursing home inspections to be random and unannounced. Current law requires DPH, whenever possible, to conduct both state and federally required inspections at the same time (1) when required for state licensing and for federal Medicaid or Medicare certification and (2) in at least 70% of the facilities. The bill removes this 70% requirement.

Background

Federal Inspection Schedules. To receive federal Medicare or Medicaid reimbursement, nursing homes must become federally certified and periodically undergo federally-mandated inspections (called surveys under federal law). In Connecticut, DPH conducts these surveys for the federal government under a contract with the federal Center for Medicare and Medicaid Services. The surveys must take place, on average, every 12 months, and the time between inspections cannot be more than 15 months. Federal law prohibits advance notice of the survey to the nursing home and imposes civil penalties on anyone giving the homes advance notice. Federal regulations also require that the surveys be unannounced (42 U. S. C. § 1395i-3(g)(2) and 42 C. F. R. §§ 488. 307 and 488. 308).

State Requirements. By law, DPH must renew nursing home licenses every two years after an unscheduled inspection and the nursing home's submission to the commissioner of evidence that it is in compliance with state law, as well as other information the commissioner requires. The law generally prohibits DPH employees, Department of Social Services employees, and regional long-term care ombudsmen from notifying a nursing home that an inspection or other investigation is being considered or about to take place. If they give such notice, they are guilty of a class B misdemeanor and can be dismissed, suspended, or demoted, unless federal or state law specifically requires advance notice. A class B misdemeanor has a penalty of up to six months imprisonment, a fine of up to $ 1,000, or both.

sSB 131

AN ACT CONCERNING FULL DISCLOSURE OF PREPAID FUNERAL SERVICE CONTRACTS

This bill requires:

 

Pre-Need Funeral Contracts. By law, funeral homes may contract with consumers in advance to provide services and products for a funeral. These contracts can be revocable or, if their value does not exceed $ 5,400, irrevocable. The law already requires funeral homes to place the money the consumer pays on such a contract in an escrow account administered by an escrow agent, which must be a bank, savings and loan association, insurance company, or registered broker-dealer. It also already restricts what the funds can be invested in, requires each party to the contract to receive an annual statement, and sets other procedures for handling the escrow accounts and what to do in case of defaults on either side.

sSB 132

AN ACT REQUIRING CRIMINAL BACKGROUND CHECKS ON CAREGIVERS TO THE ELDERLY

This bill requires nationwide criminal background checks on caregivers and administrators who seek and are offered work in a nursing home or home health care agency (care providers), including people hired through a temporary employment agency. Caregivers include people whose employment or contractual service with a care provider includes physical access to patients or access to patients' finances. Starting October 1, 2002, the bill prohibits providers from hiring such employees without a background check.

The bill establishes procedures for these background checks. It prescribes the duties of the Department of Public Safety (DPS), which conducts the checks, and the Department of Public Health (DPH), which makes the decision to disqualify people from such employment if they are unfit for it and have been convicted, incarcerated, or on probation in the past three years for any of a list of specified crimes. The bill affords the disqualified applicant an opportunity for a hearing and appeal. DPH must keep the background check information confidential.

At the provider's request, DPS, or its designee, must take the applicant's fingerprints. DPS must conduct the background check by submitting the fingerprints to the Federal Bureau of Investigation (FBI). DPS then provides the criminal history record to DPH. DPH must charge the provider the fee for the FBI check (currently $ 24). It must also reimburse DPS for the actual cost of the background check.

The bill authorizes the DPS and DPH commissioners to adopt regulations concerning their respective responsibilities under the program. Although the bill takes effect October 1, 2002, it gives the DPH commissioner the option of establishing a three-year phase-in based on type of provider, by regulation.

Beginning October 1, 2002, providers must keep records showing they have complied with the bill and are subject to fines of up to $ 500 per violation for noncompliance. By October 1, 2002, the DPH commissioner must notify providers of the bill's requirements.

EFFECTIVE DATE: October 1, 2002, but upon passage for the DPH commissioner's notification requirements.

sSB 133

AN ACT CONCERNING THE APPLICABILITY OF MEDICARE SUPPLEMENT INSURANCE RATE INCREASES

This bill prohibits Medicare supplement insurers from increasing rates for at least six months after the initial issue date of a policy. The prohibition applies to Medicare supplement policies first issued on or after October 1, 2002.

A Medicare supplement policy is an individual or group health insurance policy that provides benefits additional to those Medicare provides. Policies sold in Connecticut have been standardized in accordance with federal law (OBRA 90). Insurers must offer a core benefit policy, Plan A, and may offer policies with additional benefits (Plans B through J). Except for Plans H, I, and J, coverage must be offered, and rates must be computed, without regard to the insured's previous claims history or medical condition.

sSB 135

AN ACT CONCERNING NURSING HOME STAFFING LEVELS

This bill (1) subjects nursing homes to loss of their license if they do not have enough staff to meet their residents' needs and (2) phases in higher minimum direct care staffing standards over two years. It requires homes that do not meet the standards on any day to report that fact and the surrounding circumstances to DPH every quarter. It allows the DPH commissioner to take certain enforcement actions against homes that fail to submit the reports or have a pattern of noncompliance with the minimum standards.

Non-issuance or Withdrawal of License

The bill prohibits DPH from issuing or renewing a nursing home license unless the facility employs sufficient nursing personnel needed for continuous 24-hour nursing care and services to meet each resident's needs.

Direct Care Defined

For purposes of staffing levels, the bill defines "direct care" as care provided to residents that includes face-to-face assessment; administration of medication or treatments; and feeding, bathing, toileting, dressing, and lifting and moving residents. It does not include food preparation, housekeeping, or laundry services, except when these services are required to meet the needs of a resident on an individual or situational basis.

Minimum Direct Care Staffing Level Phase-in

DPH licenses two types of nursing homes: chronic and convalescent care nursing homes (CCNHS), which provide skilled nursing care, and rest homes with nursing supervision (RHNSs), which provide intermediate care. Current regulations set somewhat lesser minimum staffing standards for RHNSs than for CCNHs.

The bill requires both types of nursing homes to maintain identical higher aggregate licensed nurse and nurse's aide staffing levels, over a 24-hour period, in a two-step phase-in. The table below compares the current requirements to the proposed phase-in.

No. of Direct Care Hours per Patient Over a 24-hr. Period

Start Date

Nurse's Aides

Licensed Nurses

Current CCNH

1. 26 hrs.

. 64 hrs.

Current RHNS

. 56 hrs.

. 31 hrs.

Proposed: (both types)

10/1/2002

1. 66 hrs.

. 70 hrs.

Proposed (both types):

10/1/2003

2. 00 hrs.

. 75 hrs.

Directors and Assistant Directors of Nurses

Under the bill, a facility with 61 or more beds cannot count its director of nurses in meeting the minimum staffing requirements for direct care from licensed nurses. Current regulations already have this provision.

The bill requires a facility with 121 or more beds to hire a full-time assistant director of nurses, who also cannot be included in meeting the direct care requirements. Current regulations already require facilities with 120 or more beds to hire an assistant director of nurses, but prohibit facilities with 121 or more beds from counting directors and assistant directors of nurses in meeting minimum staff ratios.

The bill requires any licensed nursing home that fails to comply with these staffing minimums on any day to submit a report to DPH, on a quarterly basis, that contains (1) the day and shift when the noncompliance occurred and (2) the reasons for and circumstances surrounding the noncompliance.

The bill allows the DPH commissioner to take certain enforcement actions (issuing citations and imposing civil penalties) if (1) the facility fails to submit this report or intentionally misrepresents the information contained in it, or (2) the commissioner determines that there is enough evidence to support a finding that the facility has a pattern of noncompliance.

This bill requires the Department of Social Service (DSS) commissioner, starting July 1, 2002, to annually increase the amount of unearned income that is excluded (unearned income "disregard") when she determines someone's eligibility for State Supplement benefits. The amount of the increase is equal to the percentage increase in the average consumer price index for urban consumers in the most recent calendar year over the average for the previous calendar year. Currently, she excludes a set amount of unearned income, which varies based on the person's living arrangement. This disregard has not risen since 1988. The maximum State Supplement benefit has likewise been frozen for several years.


EFFECTIVE DATE: July 1, 2002

State Supplement. Needy people who are aged, blind, or disabled can qualify for State Supplement benefits, regardless of whether they are also receiving Supplemental Security Income (SSI) benefits. Eligibility and benefit determination is complex.

In general, DSS looks at the income (both earned and unearned), takes deductions from both types of income, and compares the net amount to a "need" standard. (Gross income cannot exceed 300% of the SSI benefit, which is currently $ 1,635 per month and assets can be no more than $ 1,600 for a single applicant. ) The unearned income disregard varies, depending on the person's living arrangement. For example, someone living alone in the community has $ 183 deducted from his unearned income.

Like the disregard, the need standard varies, depending on the applicant's or recipient's living arrangement. It consists of both the housing costs and a personal needs allowance. Using the above example, someone living in the community has a shelter limit of $ 400 per month and gets a personal needs allowance of $ 164. 10, so his total monthly need would be a maximum of $ 564. 10. (DSS looks at the applicant's actual rent. With regard to needs allowance, people living in licensed boarding facilities have different standards. )

If net income is greater than the need standard, the person is ineligible for assistance. If it is less, the person qualifies and the benefit equals the difference between the two.

Impact of SSI COLAs on State Supplement Benefits. Each year the SSI maximum benefit is adjusted for increases in the cost-of-living (COLA). State Supplement recipients have not been able to deduct these increases since the disregard was frozen. Thus, their state benefit has dropped in proportion to the SSI COLAs.

The state helps people who are eligible for both Medicare and Medicaid ("dually-eligible") by paying providers a portion of the individual's Medicare cost-sharing (e. g. , premiums) requirements. This bill exempts licensed physicians serving these patients from the law's payment limits. Under current law, the amount the Department of Social Services (DSS) may pay these providers, when combined with the Medicaid payment, cannot exceed the amount that Medicaid alone would pay for the same service. (Providers whose rates the Department of Public Health sets are already exempt from these limits. ) The bill requires physicians to be paid the patient's full deductible and coinsurance.

Delay Nursing Home rate increase until 12/2002

-$ 10. 5 million

Nursing Home Staffing Enhancement

$ 2 million

Dually Eligible Rate Relief

-$ 1. 3 million

Reduce Waterbury Elderly Health Screening

-$ 214,045

COLA for Supplement Assistance (1/2 yr)

$ 1 million

Supplement Elderly Services

$ 185,000.