Testimony to the Senate Ways and Means Committee

SB 218: Money Following the Person

March 2, 2005

 

 

Chairman Umbarger and members of the Committee, I am very pleased to be here today to provide testimony regarding SB 218. My name is Tanya Dorf, and I serve as the Chair of the Governmental Affairs Committee for the Kansas Association of Centers for Independent Living (KACIL). I am also the Executive Director of Independence, Inc., one of the twelve Centers for Independent Living (CILs) KACIL represents.

 

Centers for Independent Living provide services to people with disabilities of all ages. CILs also provide information and assistance to businesses and other entities in the community to increase opportunities for people with disabilities to live, work and participate in all aspects of community life. We advocate at a state and national level for the rights of all people with disabilities to live in the communities of their choice. 

 

CILs are also the points of entry for the Home and Community Based Services (HCBS) Physical Disabilities waiver. We provide most of the case management services for persons on the waiver, which means we are involved in putting together the plans of care for each person.

 

Background of SB 218

At the beginning of FY 2004, the state of Kansas began affirming its belief that people have the right to live in the community and should not be discriminated against by having to live in a nursing home when that is not their choice. This was affirmed with the inclusion of a very simple proviso in the FY 2004 Omnibus Budget bill – a proviso which ensures money will follow people when they transition from nursing homes to HCBS services. Lawmakers and state officials knew it was the right thing to do to make this small change. This small change has had a significant impact in the lives of the people who have made the transition out of nursing homes. It has not affected the ability of other people to choose nursing home services at all.

 

This same concept has existed in law for Kansans with developmental disabilities since passage of the 1995 Developmental Disabilities Reform Act. This Act provides that anyone who lives in a state developmental disabilities hospital and chooses to live in the community will have funds follow them from the state institution to HCBS services. It is now time for money to follow people from any facility-based setting to community-based services.

 

Purpose of SB 218

To ensure Kansans will continue being able to choose to move from nursing homes into the community, KACIL has proposed this legislation to put the Money Following the Person concept into law. Transitioning this concept from proviso to law will affirm that it is the policy of the state to allow people who live in nursing homes to choose community-based services. It is also a way in which Kansas can demonstrate its commitment to the spirit of the U.S. Supreme Court’s 1999 Olmstead decision.

 

This bill is about good public policy. It simply makes sense to allow people who need long-term care services to receive them in the setting of their choice. Medicaid regulations allow anyone who is Medicaid-eligible to receive long-term care services in a nursing home. A nursing home is a valid and good choice for services for many people. But, not everyone who needs long-term care services funded by Medicaid would choose to live in a nursing home. SB 218 allows people to make a choice between either service setting.

 

The mechanics of SB 218 would only apply when there is a waiting list for Frail Elderly and/or Physical Disability waiver services, because it allows people in nursing homes to choose to live in the community without having to wait for services. Currently there is no waiting list for the Frail Elderly waiver. The number of people on the Physical Disabilities waiver has been steadily declining over the past year as more people have begun receiving services. So, it is conceivable to see a day in the not so distant future when there is no waiting list for either waiver. If that day arrives, SB 218 would not be needed. But, if enacted, SB 218 would always be there as both the public policy for the state of Kansas and as a tool to use when and if a waiting list exists.

 

Collaboration

When the proviso was introduced in FY 2004, it was a collaborative effort between Centers for Independent Living, SRS, and the Department on Aging. Since it was a new concept, it was developed as a sort of pilot project. A cap of 75 people per year who would be allowed to use the money following the person mechanism was included in the proviso. In the first year, the number of money following the person slots was divided between the Frail Elderly and Physical Disabilities waivers. This meant roughly 37 elderly people and 38 people with physical disabilities were able to access this mechanism in the first year. We are mid-way through the second year of the proviso. Since there is no waiting list for Frail Elderly waiver services, all 75 of the slots were allocated to the Physical Disabilities waiver. As of February 14, 2005, 60 people living in nursing homes were offered Physical Disability waiver services.

 

This year, SB 218 was developed by Centers for Independent Living, with the help of Sen. Derek Schmidt. As we have begun working on the details of the bill, we have begun developing a collaborative relationship with representatives of nursing homes across the state. It is no small feat for nursing homes and Centers for Independent Living to work toward agreement on such an issue. I believe it is safe to say that the Centers for Independent Living and the nursing homes generally believe it is the right public policy to offer people a choice between nursing home and community-based services. I believe it is also safe to say that advocates on both sides of the fence believe the processes of identifying people who may want to move to the community and successfully facilitating that move could operate more smoothly. To that end, KACIL is initiating meetings between the Statewide Independent Living Council of Kansas, the Kansas Association of Area Agencies on Aging, the Kansas Health Care Association, and the Kansas Association of Homes and Services for the Aging. We want to work more closely together now and in the future to ensure all the parties can work together amicably to help people who wish to transition to the community. When the proviso was first put into place, SRS and the Department on Aging brought together advocates from the independent living and the nursing home arenas to develop the policy described in line 31 of SB 218. This marked the beginning of these groups working together on a unified public policy. We want this collaboration to continue, and we plan to work with our colleagues to develop processes which can ensure transitions take place smoothly now and in the future.

 

Amendment

Because the aim of SB 218 is to enact public policy which preserves the right of people to choose to receive long-term care services in the setting of their choice, KACIL now proposes an amendment to the bill which removes the cap of 75 people per year who are allowed to make the transition. Public policy should be based on what is right for the people of the state of Kansas and should not limit the number of people who can benefit from it. We ask for your support of not only SB 218, but the proposed amendment to the bill.

 

Plans for the future

Kansas is not alone in its efforts to make the processes smoother for people to transition to the community. A handful of other states, including Texas, Missouri and Utah have enacted similar money following the person provisos or statutes. Additionally, the federal government has provided a limited number of grants in the past couple of years to incentivize states to ensure money follows people to community-based settings. You will hear more about the direction the federal government is now taking and how this bill fits with the federal proposal from the Statewide Independent Living Council of Kansas. So, while Kansas is not alone in its efforts regarding money following the person, Kansas does continue to be on the frontier. We were one of the first states to begin offering Home and Community-Based Services waivers, and with the steps we’ve already taken regarding money following the person, we continue to pave the way for other states.

 

In a speech on February 1, new U.S. Health and Human Services Secretary Mike Leavitt said,

“We can ensure that seniors and people with disabilities get long-term care where they want it. The President's New Freedom Initiative points us in the right direction. Home care and community care can allow many Americans with disabilities to continue to live at home, where they can enjoy family, neighbors, and the comfort of familiar surroundings. Medicaid should not force these people to live in institutions. Just as importantly, we can serve more people.”

 

As we all know, it’s hard to tell where the federal government is heading on Medicaid policy, but it is very good to see the new Secretary acknowledging that choice in where people receive long-term care services is the right policy direction.

 

 

On behalf of the members of KACIL, I ask for your support of SB 218 and our amendment. This legislature has already shown its commitment to providing a cost-effective choice in long-term care services for Kansans. I ask you to continue showing that commitment by supporting this bill.

 

Thank you for the opportunity to provide this testimony. I am happy to stand for any questions.

 

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