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                                                      PRINTER'S NO. 2644

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1935 Session of 2005


        INTRODUCED BY PISTELLA, DeWEESE, BIANCUCCI, FABRIZIO, KOTIK,
           BEBKO-JONES, BELFANTI, CALTAGIRONE, CAPPELLI, CAWLEY, COHEN,
           CORRIGAN, CRUZ, DALEY, DeLUCA, FRANKEL, GOODMAN, GRUCELA,
           HARHAI, HERMAN, KIRKLAND, LEACH, LEDERER, MANN, McGEEHAN,
           REED, ROONEY, SIPTROTH, SHANER, STABACK, WALKO, WOJNAROSKI,
           YOUNGBLOOD AND YUDICHAK, AUGUST 24, 2005

        REFERRED TO COMMITTEE ON AGING AND OLDER ADULT SERVICES,
           AUGUST 24, 2005

                                     AN ACT

     1  Establishing the Enhanced Senior Services Demonstration Program;
     2     and conferring powers and imposing duties on the Department
     3     of Aging, the Department of Public Welfare and the
     4     Pennsylvania Housing Finance Agency.

     5     The General Assembly of the Commonwealth of Pennsylvania
     6  hereby enacts as follows:
     7  Section 1.  Short title.
     8     This act shall be known and may be cited as the Enhanced
     9  Senior Services Demonstration Program Act.
    10  Section 2.  Declaration of policy.
    11     The General Assembly finds and declares that:
    12         (1)  Pennsylvania has one of the highest proportions of
    13     elderly individuals in the nation. Persons 85 years of age
    14     and older are the fastest growing segment of this
    15     Commonwealth's population.
    16         (2)  A significant number of elderly residents of this


     1     Commonwealth have difficulty carrying out basic life
     2     activities, and many are at high risk for
     3     institutionalization due to chronic illness and disability.
     4         (3)  There is a growing consumer preference for more
     5     housing and care alternatives designed specifically for
     6     persons who need assistance with basic life activities but do
     7     not need the level of skilled nursing care and therapy that
     8     nursing homes provide.
     9         (4)  There are few private sector initiatives creating
    10     long-term living options that are affordable to low-income
    11     and moderate-income frail elderly individuals.
    12         (5)  It is imperative for State government and long-term
    13     health providers to develop cost-effective means of caring
    14     for at-risk elderly individuals and in particular those low-
    15     income and moderate-income frail elderly individuals whose
    16     needs are appropriate for supportive housing placement but
    17     who cannot afford the costs of market rate, private pay
    18     assisted living and personal care home facilities.
    19         (6)  An alternative form of housing and care must be
    20     developed in this Commonwealth for low-income and moderate-
    21     income frail elderly individuals to enable them to live in a
    22     residential setting as independently as possible while
    23     achieving cost savings to Medicaid.
    24         (7)  An Enhanced Senior Services Demonstration Program,
    25     administered by the Pennsylvania Housing Finance Agency in
    26     collaboration with the Department of Aging and the Department
    27     of Public Welfare, will allow this Commonwealth to provide
    28     appropriate housing and care needed by frail elderly
    29     individuals in this Commonwealth and to evaluate the cost
    30     savings and other benefits of enhanced senior services.
    20050H1935B2644                  - 2 -     

     1         (8)  The purpose of this act is to provide long-term
     2     living alternatives to low-income and moderate-income elderly
     3     individuals who are chronically impaired or disabled and who
     4     are in nursing homes or at risk of placement in nursing
     5     facility care.
     6  Section 3.  Definitions.
     7     The following words and phrases when used in this act shall
     8  have the meanings given to them in this section unless the
     9  context clearly indicates otherwise:
    10     "Agency."  The Pennsylvania Housing Finance Agency.
    11     "Demonstration program."  The Enhanced Senior Services
    12  Demonstration Program established under section 4.
    13     "Enhanced senior services unit."  An apartment unit in a
    14  Pennsylvania Housing Finance Agency-approved facility.
    15     "Facility."  A facility that is approved by the Pennsylvania
    16  Housing Finance Agency under section 5.
    17     "Government funds."  Funds provided under the act of June 13,
    18  1967 (P.L.31, No.21), known as the Public Welfare Code.
    19     "Long-term living assessment."  A program, approved by the
    20  Department of Aging and the Department of Public Welfare, that
    21  provides a uniform health, social and functional assessment of
    22  persons in need of long-term living services due to chronic
    23  impairment or disability.
    24     "Resident."  A person residing in a Pennsylvania Housing
    25  Finance Agency-approved facility. The term includes the
    26  resident's attorney-in-fact, guardian or other legal
    27  representative acting within the scope of the resident's
    28  authority.
    29     "Supportive services."  Personal care and services,
    30  homemaker, chore, attendant care and companion services,
    20050H1935B2644                  - 3 -     

     1  medication oversight, to the extent permitted under law, and
     2  therapeutic social and recreational programming, provided in a
     3  home-like environment in a Pennsylvania Housing Finance Agency-
     4  approved facility.
     5  Section 4.  Demonstration program.
     6     (a)  Approval.--The Secretary of Public Welfare and the
     7  Secretary of Aging, in consultation with the executive director
     8  of the agency, shall cooperate and collaborate in designating
     9  waiver slots to fund the demonstration program for up to 1,800
    10  persons residing in agency-approved facilities.
    11     (b)  Long-term living services initiatives.--The Secretary of
    12  Public Welfare and the Secretary of Aging, in cooperation with
    13  the Governor's Office of Health Care Reform, shall consider and
    14  incorporate where appropriate all applicable long-term living
    15  services initiatives into the demonstration program, including
    16  the nursing home transition project, which provides assistance
    17  to nursing home residents who wish to relocate from a nursing
    18  home to the community.
    19     (c)  Cooperation.--The Secretary of Public Welfare and the
    20  Secretary of Aging shall cooperate in assuring that:
    21         (1)  Waiver budgeting is secured on an annual basis.
    22         (2)  Ongoing waiver reporting requirements are met.
    23         (3)  Waivers are available for the term of the
    24     demonstration program.
    25     (d)  Allocation.--Waivers may be allocated on a project basis
    26  and may be allocated to approved facilities for the term of the
    27  demonstration program.
    28     (e)  Periodic review.--The demonstration program shall be
    29  reviewed periodically by the Department of Aging and the
    30  Department of Public Welfare in consultation with the executive
    20050H1935B2644                  - 4 -     

     1  director of the agency. The program may be expanded as funding
     2  for additional waivers is made available.
     3  Section 5.  Agency-approved facilities.
     4     The agency may approve a facility for participation in the
     5  demonstration program if the facility:
     6         (1)  Provides lodging, meals and supportive services to
     7     two or more households.
     8         (2)  Receives funding through one of the agency's
     9     multifamily programs and receives funding through:
    10             (i)  the Federal public housing program, including
    11         private developments receiving public housing capital
    12         funds or Annual Contributions Contract (ACC) funds;
    13             (ii)  section 202 of the National Housing Act (48
    14         Stat. 1246, 12 U.S.C. § 1701 et seq.) or any successor
    15         program providing rental subsidy for qualified residents;
    16         or
    17             (iii)  project-based rental assistance through either
    18         the Housing Choice Voucher Program or a comparable rental
    19         subsidy program as determined by the agency.
    20         (3)  Contains full, independent housing units that meet
    21     the requirements of the applicable agency program.
    22         (4)  Does not contain congregate and single room
    23     occupancy housing.
    24         (5)  Contains the common spaces necessary in order to
    25     provide supportive services. Required common spaces include:
    26             (i)  A common dining room.
    27             (ii)  A commercial kitchen or kitchen area for
    28         catered food delivery.
    29             (iii)  Activity space.
    30             (iv)  A private room for clinical examinations.
    20050H1935B2644                  - 5 -     

     1             (v)  Office space for demonstration program
     2         personnel.
     3  Section 6.  Supportive services.
     4     (a)  Funding.--Supportive services paid for with government
     5  funds in an agency-approved facility shall be provided to those
     6  residents whose long-term living assessment indicates the
     7  resident can receive appropriate care in the agency-approved
     8  facility.
     9     (b)  Nonaffiliated service providers.--Persons and agencies
    10  other than those affiliated with or related to the owner and/or
    11  resident management of the agency-approved facility may furnish
    12  supportive services, either directly or under arrangement with
    13  the agency-approved facility, but the services provided by these
    14  persons or agencies shall be under the direction and control of
    15  the resident provided that:
    16         (1)  The agency-approved facility is not required to
    17     fundamentally change its program or facility to accommodate
    18     the delivery of supportive services by nonaffiliated service
    19     providers to the resident.
    20         (2)  The resident's receipt of supportive services by
    21     nonaffiliated service providers does not create an undue
    22     burden on the agency-approved facility.
    23     (c)  Screening and access.--The agency-approved facility may
    24  screen nonaffiliated service providers. An agency-approved
    25  facility shall not unreasonably deny a nonaffiliated service
    26  provider access to a resident's enhanced senior services unit.
    27     (d)  Civil immunity.--Except as set forth in subsection (e),
    28  the following are immune from civil liability for a claim
    29  arising from an act or omission related to supportive services
    30  by nonaffiliated service providers:
    20050H1935B2644                  - 6 -     

     1         (1)  An agency-approved facility.
     2         (2)  The owner of an agency-approved facility which is a
     3     sole proprietorship.
     4         (3)  The partners of an agency-approved facility which is
     5     a partnership.
     6         (4)  The members of an agency-approved facility which is
     7     an unincorporated association.
     8         (5)  The stockholders, officers and directors of an
     9     incorporated agency-approved facility.
    10         (6)  A parent or subsidiary of an incorporated agency-
    11     approved facility.
    12         (7)  The resident management company that provides
    13     overall management services to an agency-approved facility.
    14     (e)  Exceptions.--Subsection (d) does not apply if any of the
    15  following apply:
    16         (1)  The person charged with the act or omission acts in
    17     bad faith.
    18         (2)  The person charged with the act or omission knows or
    19     has reason to know that the act or omission poses a
    20     substantial danger to the health, safety or welfare of the
    21     resident.
    22     (f)  Transportation services.--Supportive services may
    23  include transportation services specified in the plan of care.
    24     (g)  Nursing and skilled therapy services.--Nursing and
    25  skilled therapy services except periodic nursing evaluations
    26  specified within this act are not integral to the provision of
    27  supportive services.
    28     (h)  Certain skilled care or supervision.--Payment shall not
    29  be made for supportive services that include 24-hour skilled
    30  care or supervision.
    20050H1935B2644                  - 7 -     

     1     (i)  Long-term living assessment.--A long-term living
     2  assessment for purposes of this act shall be completed by staff
     3  of the area agency on aging office in the locality of the
     4  agency-approved facility.
     5     (j)  Reassessment.--Continued provision of supportive
     6  services paid for with government funds in an agency-approved
     7  facility shall be based on a reassessment of the recipient's
     8  care needs to be performed at least once every 180 days.
     9     (k)  Notification.--If, as a result of the reassessment, it
    10  is determined that the recipient no longer qualifies for the
    11  payment of supportive services to be paid for with government
    12  funds, the agency-approved facility shall be notified of the
    13  determination at least 40 days prior to termination of payment
    14  under the waiver and shall be afforded an opportunity to request
    15  reconsideration of the determination prior to cancellation of
    16  payment on behalf of any resident in the agency-approved
    17  facility.
    18  Section 7.  Duties of secretary and department.
    19     (a)  Use of medical assistance funds.--Notwithstanding any
    20  inconsistent provision of law but subject to the expenditure
    21  limitations of this act, the Secretary of Public Welfare,
    22  subject to the approval of the Secretary of the Budget, shall
    23  authorize the utilization of medical assistance funds to pay for
    24  supportive services provided by agency-approved facilities. The
    25  medical assistance funds shall be utilized to pay for supportive
    26  services, in addition to those services included in the medical
    27  assistance program under the act of June 13, 1967 (P.L.31,
    28  No.21), known as the Public Welfare Code, so long as Federal
    29  financial participation is available for those services.
    30  Expenditures made under this section shall be deemed payments
    20050H1935B2644                  - 8 -     

     1  for medical assistance for needy persons.
     2     (b)  Payments under Social Security Act.--The Department of
     3  Public Welfare shall not make payments pursuant to Title XIX of
     4  the Social Security Act (49 Stat. 620, 42 U.S.C. § 1396 et
     5  seq.), for benefits available under Title XVIII of the Social
     6  Security Act (49 Stat. 620, 42 U.S.C. § 1395 et seq.), without
     7  documentation that Title XVIII claims have been filed and
     8  denied.
     9     (c)  Payments under other waiver program.--The Department of
    10  Public Welfare shall not make payments for a person receiving
    11  supportive services while payments are being made for that
    12  person under another Medicaid waiver program or for inpatient
    13  care in a skilled nursing and intermediate care facility or
    14  hospital. However, this shall not affect monthly payments made
    15  under prospective reimbursement contracts.
    16     (d)  Reimbursement rate.--Reimbursement to agency-approved
    17  facilities for supportive services shall be $43.18 per day per
    18  eligible service recipient. This rate shall be adjusted annually
    19  by the Department of Public Welfare based upon the Consumer
    20  Price Index.
    21  Section 8.  Selection of agency-approved facility sites.
    22     Agency-approved facilities shall be selected through a
    23  competitive process designed and administered by the agency in
    24  consultation with the Department of Public Welfare and the
    25  Department of Aging. Priority in the award of demonstration
    26  program resources shall be given to existing or proposed
    27  facilities which are, or are projected to be, newly constructed
    28  or substantially rehabilitated, in which a minimum of 70% of the
    29  units are restricted to low-income elderly households, and which
    30  otherwise meet the requirements of this act.
    20050H1935B2644                  - 9 -     

     1  Section 9.  Evaluation of demonstration program.
     2     Upon implementation of the demonstration program and
     3  occupancy of agency-approved facilities by low-income and
     4  moderate-income persons, the agency in collaboration and
     5  cooperation with the Department of Aging and the Department of
     6  Public Welfare shall evaluate the qualitative benefits and cost
     7  effectiveness of the program.
     8  Section 10.  Effective date.
     9     This act shall take effect immediately.














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