Sponsors: Representatives Bailey, Cody, Morrell, Clibborn, Schindler, Armstrong, Woods, Schual-Berke, O'Brien, McDonald, Edwards, Wallace, Conway and Kagi.

Brief Summary of Bill

• Directs the Secretary of the Department of Social and Health Services (Department) to contract for a study reviewing existing financial mechanisms and incentives for utilizing and purchasing long-term care services.

• The Department will also establish an information and referral process to assist people in arranging home equity conversion mortgages to pay for long-term care services.

Majority Report: Do pass. Signed by 13 members: Representatives Cody, Chair; Morrell, Vice Chair; Bailey, Ranking Minority Member; Alexander, Benson, Campbell, Clibborn, Darneille, Edwards, Moeller, Rodne, Schual-Berke and Skinner.

Over the next 20 years, the portion of the population over age 65 will grow dramatically. The increased demand for long-term care services for the elderly will place greater burdens on the state operating budget.

The Secretary of the Department of Social and Health Services (Department) will contract for a study reviewing existing financial mechanisms and incentives for individuals to utilize and purchase long-term care services. The Department will also establish an information and referral process to assist people in arranging home equity conversion mortgages to pay for long-term care services.

Effective Date: The bill contains an emergency clause and takes effect immediately.

Testimony For: It is important to encourage individuals to take financial responsibility for their own long-term care, to the extent they can. The increasing number of senior citizens will place a great strain on the long-term care system.

Testimony Against: Financing long-term care should be a societal responsibility, not a personal responsibility. The Department of Social and Health Services should not be referring citizens to financial institutions to take out reverse mortgages.

Persons Testifying: (In support) Representative Bailey, prime sponsor; Deb Murphy, Washington Association of Housing & Services for the Aging; Lauri St. Ours, Northwest Assisted Living Facilities Association; and Jerry Reilly.