AN ACT CONCERNING THE MONEY FOLLOWS THE PERSON PROJECT AND ESTABLISHMENT OF A LONG-TERM CARE TRUST FUND.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 17b-369 of the 2008 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

The Commissioner of Social Services, pursuant to Section 6071 of the Deficit Reduction Act of 2005, may submit an application to the Secretary of Health and Human Services to establish a Money Follows the Person demonstration project. Such project shall serve not more than [seven hundred] five thousand persons and shall be designed to achieve the objectives set forth in Section 6071(a) of the Deficit Reduction Act of 2005. Services available under the demonstration project shall include, but not be limited to, personal care assistance services. The commissioner may apply for a Medicaid research and demonstration waiver under Section 1115 of the Social Security Act, if such waiver is necessary to implement the demonstration project. The commissioner may, if necessary, modify any existing Medicaid home or community-based waiver if such modification is required to implement the demonstration project.

Sec. 2. (NEW) (Effective July 1, 2008) (a) There is established within the General Fund, a separate, nonlapsing account which shall be known as the "Long-Term Care Trust Fund". The account shall contain any moneys required by this section to be deposited in the account and shall be administered by the Treasurer. Investment earnings credited to the assets of the account shall become part of the assets of the account. Moneys in the account shall be used to supplement and not to supplant existing federal and state funding available for long-term care.

(b) The following funds shall be deposited in the account: (1) Any funds resulting from an enhanced federal medical assistance percentage received by the state under the Money Follows the Person demonstration project pursuant to Section 6071 of the Deficit Reduction Act of 2005; (2) any funds appropriated for Medicaid and designated for the Money Follows the Person demonstration project by the Department of Social Services that are not spent during the fiscal year for which they are appropriated; (3) the difference between (A) the costs actually incurred by the state per person to transition an individual participating in the Money Follows the Person demonstration project from an institution to a home and community-based program, and (B) the cost that the state would have incurred if such individual remained in an institution; (4) any funds appropriated to the Department of Social Services from the General Fund for home and community-based long-term care services that are not spent during the fiscal year for which they are appropriated; (5) any fines or civil penalties levied by the Department of Public Health on nursing home facilities for violating applicable state laws and regulations; and (6) any additional moneys received from any public or private sources or from the federal government for purposes of long-term care.

(c) Money held in the account shall be expended by the Commissioner of Social Services, in accordance with this subsection and the regulations adopted pursuant to subsection (d) of this section, to:

(1) Provide funds for programs and services that provide cost-effective home and community-based alternatives to institutional care in nursing home facilities, including, but not limited to, occupational therapy, homemaker services, companion services, meals on wheels, adult day care, personal care services, transportation, mental health counseling, care management, elderly foster care, minor home modifications and assisted living services;

(2) Provide funds to improve information technology and systems used to track costs and savings associated with the provision of home and community-based services and to improve access to information on long-term care programs and services for the elderly and disabled;

(3) Encourage the purchase of precertified long-term care insurance through the Connecticut Partnership for Long-Term Care by covering the costs of the premiums of individuals for six months;

(4) Pay the cost of relocating nursing home residents to other facilities if necessary to protect the health and safety of such residents, maintaining and operating a facility pending correction of deficiencies or closure, and reimbursing residents for the loss of funds in personal fund accounts pursuant to subsection (b) of section 17b-106 of the 2008 supplement to the general statutes;

(5) Provide rental or mortgage assistance to allow individuals to remain in their homes while receiving home and community-based services;

(6) Provide grants to existing nursing home facilities to make facility changes, improvements and modifications to support home and community-based services and programs; and

(7) Provide grants to promote the adoption of building designs and principles of alternative nursing homes, such as Eden Alternative, Green House or Small House nursing homes, to improve the quality of life for long-term care facility residents.

(d) The Commissioner of Social Services shall adopt regulations, in accordance with the provisions of chapter 54 of the general statutes, for purposes of the distribution of funds pursuant to subsection (c) of this section, including, but not limited to, application procedures and establishment of eligibility criteria and requirements for recipients of assistance.

(e) On or before January 1, 2009, and annually thereafter, the Commissioner of Social Services shall submit a report to the Governor and the General Assembly concerning the long-term care trust fund established under this section. The report shall include financial information concerning the money in the trust fund, including, but not limited to, information on the number, amount and type of expenditures from the fund during the prior calendar year and estimates of the impact of the fund on present and future Medicaid expenditures.

Sec. 3. (NEW) (Effective July 1, 2008) The Commissioner of Social Services shall establish and administer a pilot program that operates in an identical manner to the Money Follows the Person demonstration project pursuant to section 17b-369 of the 2008 supplement to the general statutes, except that persons need not be institutionalized for at least six months to be eligible for the program. The pilot program shall serve no more than fifty persons. Services available under the pilot program shall include, but not be limited to, personal care assistance services. The commissioner may apply for a Medicaid research and demonstration waiver under Section 1115 of the Social Security Act, if such waiver is necessary to implement the pilot program. The commissioner may, if necessary, modify any existing Medicaid home or community-based waiver if such modification is required to implement the pilot program.

Sec. 4. Subsection (h) of section 59 of public act 07-1 of the June special session is repealed and the following is substituted in lieu thereof (Effective July 1, 2008):

(h) Notwithstanding the provisions of section 4-28e of the general [shall] statutes, for the fiscal year ending June 30, 2009, the sum of [$1,000,000] $2,000,000 shall be transferred from the Tobacco and Health Trust Fund to the Department of Social Services for the [CHOICES Program] Age and Disability Resource Center.

Statement of Legislative Commissioners:

In section 4, "Age and Disability Resource Center" was underscored to indicate new language and "[CHOICES Program]" was added for accuracy.