SENATE BILL REPORT

SB 5999

BYSenators Cantu, Anderson and McDonald

Establishing a financial partnership plan for the department of social and health services.

Senate Committee on Ways & Means

Senate Hearing Date(s):March 2, 1989; March 6, 1989

Majority Report:  That Substitute Senate Bill No. 5999 be substituted therefor, and the substitute bill do pass.

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Amondson, Bluechel, Cantu, Hayner, Johnson, Matson, Newhouse, Owen, Saling, Smith.

Minority Report:  Do not pass.

      Signed by Senators Bauer, Gaspard, Moore, Niemi, Talmadge, Warnke, Wojahn.

Senate Staff:Karen Hayes (786-7711)

                  March 7, 1989

AS REPORTED BY COMMITTEE ON WAYS & MEANS, MARCH 6, 1989

BACKGROUND:

The Washington State Legislature, during the 1985 session, mandated by way of a budget proviso that the Department of Social and Health Services (DSHS) conduct a study and recommend a comprehensive and equitable plan for determining financial responsibility of clients who are eligible for services.  An oversight committee composed of legislators, the affected population, the public, and department representatives met monthly to analyze and examine the issue of financial responsibility.

The department submitted a final report to the Legislature on October 31, 1986.  In February of 1987, legislation was introduced (Senate Bill 5719) which incorporated the general findings and recommendations of the oversight committee.  In the course of deliberations over financial participation of those receiving social and health assistance from the state, issues surfaced which were not examined in the report.  Continuation of this effort was requested by the Legislature and in November of 1988, Final Report Phase II of the Financial Responsibility Study was presented.

SUMMARY:

Recipients and/or other responsible parties will share in the cost of providing social and health service assistance based upon an ability to pay.  Determination of the level of financial participation will be standard across DSHS programs regardless of whether the service is rendered on a voluntary or involuntary basis.  No financial participation is required of persons adopting special-needs children, or for services made available to an individual based upon a pre-eligibility financial means test, such as aid for families with dependent children (AFDC) or general assistance unemployable (GAU).  The bill repeals a previous exemption from collection extended to parents whose children have been admitted to or discharged from a residential habilitation center.

If the responsible party fails to make payment, DSHS may file a lien, or issue an order to withhold and deliver property.  The latter remedy includes the garnishment of wages by DSHS.  However, no social or health assistance will be denied to an individual (including minors) due to that recipient's inability to pay, or if a previous unpaid obligation to the department exists. 

A one-time, $100 exemption per family is provided to encourage early access to services.  The sliding scale formula, used to determine the maximum level of financial participation, protects an increasing amount of earned income for each year the individual or family participates in the cost of care.  Any available insurance benefits are applied against the cost of care before determining the financial participation rate.

EFFECT OF PROPOSED SUBSTITUTE:

Financial participation is required for recipients of family reconciliation and juvenile rehabilitation services.  Court discretion to inquire and make a determination of financial responsibility is repealed.

A parent, guardian or custodian will continue to be exempt from liability for the cost of substance abuse treatment services when such care is extended to a minor child without the prior and joint consent of the responsible adult.

Appropriation:    none

Revenue:    yes

Fiscal Note:      requested February 23, 1989

Effective Date:October 1, 1989

Senate Committee - Testified: Senator Emilio Cantu, prime sponsor (pro); Lucille Christenson, Office of Financial Management; Jeff Larsen, Washington Assembly for Citizens with Disabilities (con)