October 19, 2006
October 19, 2006
Legislation results from Governor's long-term care task force
LANSING - Governor Jennifer M. Granholm today signed legislation that will expand access to long-term care insurance for Michigan citizens. The bipartisan legislation grew out of the 2005 recommendations of the governor's Long-Term Care Task Force, which was established in 2004.
"When I established the Long-Term Care Task Force, I charged them with identifying ways to improve care for seniors and vulnerable citizens in Michigan while addressing the impact of rising costs," said Granholm. "As a result of their outstanding work, we are already taking important steps like providing Single Points of Entry (SPE) to make accessing care easier. This legislation will help ensure that citizens understand their insurance options and are choosing policies that meet their needs."
Long-term care insurance is a relatively new form of insurance that provides coverage for extended care required by many citizens as they age or suffer from serious illness. Long-term care insurance increases the individual's options for care, including home and community-based services.
A key recommendation of the governor's task force was to increase meaningful consumer participation and education about the available options. Public Acts 441 and 442 (House Bills 5348 and 5349, respectively) strengthen insurance agent training requirements before they sell long-term care insurance and require that insurers provide customers with additional information about policy options, including forfeiture.
Today's bill signings is the latest step Governor Granholm has taken to improve long-term care services in Michigan. Immediately upon receiving the task force's report, Granholm:
- issued Executive Order 2005-14 that established a Long-Term Care Supports and Services Office and a Long-Term Care Supports and Services Advisory Commission, and required the Department of Community Health (DCH) to identify three demonstration projects to implement a key recommendation from the report.
- established a Long-Term Care Single Point of Entry, to ensure that Michigan citizens in need of long-term care supports and services have a range of options, including home and community-based services and an easy way to access those services.
In June, the governor and DCH announced the selection of four groundbreaking awards worth $34.83 million for SPE demonstration sites in Michigan. These awards are for a 27-month demonstration period designed to test the value and effectiveness of the single entry point concept intended to help move Michigan toward offering an improved system that supports dignified, person-centered, and quality lifestyles when there is a need for long-term care. The four demonstration sites include:
- Detroit - $13.1 million - submitted by Detroit Area Agency on the Aging (AAA)
- Southwest Michigan - $7.18 million - submitted by Region IV AAA
- Upper Peninsula - $5.4 million - submitted by U.P. Commission for Area Progress
- Western Michigan - $9.15 million - submitted by HHS Health Options and AAA of Western Michigan
In 2003, Granholm - with strong bipartisan support - initiated a Freedom to Work, "Medicaid buy-in" program that allows the disabled on Medicaid to have a job without fear of losing their health insurance.
In 2004, DCH - in full partnership with the federal Centers for Medicare and Medicaid Services - applied for and received a $5 million grant to strengthen and improve Michigan's long-term care criminal background check laws and to provide $1.5 million in additional abuse and neglect training to thousands of Michigan long-term care workers.
Granholm's Jobs Today initiative includes funding to modernize 75 of Michigan's oldest nursing homes and replace them with new models that permit more privacy, dignity, and family-friendly designs. The governor's 2007 budget recommendations also included a pay increase for home health workers.
House Bills 5348 and 5349 were sponsored by Representatives Kevin Green (R-Wyoming) and Paula Zelenko (D-Burton), respectively.
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