ASSEMBLY COMMERCE AND MILITARY AND VETERANS' AFFAIRS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 463

with committee amendments

STATE OF NEW JERSEY

DATED: MARCH 4, 1996

      The Assembly Commerce and Military and Veterans' Affairs Committee reports favorably and with committee amendments Assembly, No. 463.

      This bill requires the Adjutant General of the Department of Military and Veterans' Affairs to assess the availability of home health care, adult day care and assistive living services to frail, elderly or disabled veterans who would otherwise require long-term institutional care and who are not eligible for coverage under the Medicaid program. After such an assessment is made, the Governor and the Legislature shall determine whether it is necessary to institute a Veterans Alternative Health Care Demonstration Program or whether State funds would be better spent developing methods to give veterans increased access to existing alternative health care programs throughout the State.

      If the Governor and the Legislature determine existing alternative health care programs throughout the State will better assist frail, elderly or disabled veterans, the Department will use the cost savings realized by the State, if any, to provide placement for additional veterans into existing alternative health care programs. If the Governor and the Legislature determine a Veterans Alternative Health Care Demonstration Program is necessary, the program is to be developed by the Adjutant General, in consultation with the Commissioner of Health and the Commissioner of Human Services. The program will be comprised of a maximum of three agencies, organizations or entities which will be selected by the Adjutant General. The types of services provided will be nursing, homemaking, and other services deemed necessary by the Adjutant General.

      The bill directs the Adjutant General to establish financial liability limits for the demonstration program; establish guidelines for the comprehensive medical, social and financial assessment required; determine each applicant's eligibility for the program; prepare a specific plan of services needed by each applicant; and establish a fee scale for the services provided by the program based on the veteran's ability to pay, not to exceed 50% of the costs of services provided.

      The bill also requires that the Adjutant General report to the Governor and the Legislature within 24 months of the effective date of the act on the activities and effectiveness of the demonstration program, if the program is deemed necessary. The act shall expire two years after the effective date.

      The assessment and pilot program, if necessary, will be self-financed to the extent possible by the Department of Military and Veterans' Affairs through savings and cost avoidance realized by increased efficiencies within the department. Financing the program in this manner will result in no additional cost to the State.

      This bill was pre-filed for introduction in the 1996 session pending technical review. As reported, the bill includes the changes required by technical review which has been performed.

COMMITTEE AMENDMENT:

      The committee amended the bill to clarify that the assessment and the pilot program, if necessary, will be self-financed, to the extent possible, by the Department of Military and Veterans' Affairs through savings and cost avoidance realized by increased efficiencies within the department. A reference to funding through revenues generated by increased per diem reimbursement from the federal Veterans Administration was deleted. Any increase in federal per diem reimbursement would be minimal because it reflects only cost of living increases.