Good morning.  My name is Phyllis Mundy, and I represent the 120^th Legislative District in Luzerne County.  As chairman of the House Aging and Older Adult Services Committee, I am here today – joined by advocates, stakeholders, and my House colleagues – to urge the state Senate to pass House Bill 245 without further delay. 

The rationale behind House Bill 245 is straightforward.  It removes barriers to Pennsylvania’s Family Caregiver Support Program by allowing our local area agencies on aging (AAAs) to maximize the state funding they receive under the program.  As you will hear this morning, passage of House Bill 245 is the right thing to do from a quality of life standpoint for our senior citizens.  And it’s the right thing for the Commonwealth’s taxpayers.  This bill has received bipartisan support.  It passed the House of Representatives unanimously this session and last.   

The Family Caregiver Support Program provides older Pennsylvanians the opportunity to remain at home and avoid more costly institutional care by reimbursing informal, unpaid caregivers and providing financial assistance for home modifications and the purchase of assistive devices. 

Pennsylvania’s Family Caregiver Support Act of 1990 served as the model for the national program, which was established in 2000.  Unlike the state program, however, the federal government permits non-relative caregivers to participate and does not require that caregivers reside with care recipients.     

Over the last several years, these limitations have acted as a barrier to those needing access to the state program.  Despite a waiting list, our local AAAs were forced to return nearly $1 million in state funding last fiscal year. They could not use it because of Pennsylvania’s more restrictive guidelines.  This, unfortunately, has been a continuous trend. 

The federal program recognizes that today’s caregivers are not limited to traditional family members but increasingly include friends and neighbors.  Also, not all family members reside in the same household as their loved ones.  House Bill 245 would remove these unnecessary restrictions and eliminate the current 360 person waiting list by mirroring the federal program. 

House Bill 245 also increases the reimbursement limit for respite care and other caregiving expenses, as well as the lifetime grant limit for home modifications and assistive devices.  These changes again coincide with the federal program.  This would be the first adjustment to these rates since Pennsylvania’s program was enacted almost twenty years ago. 

Informal caregivers are the backbone of our long-term care system.  These individuals provide the vast majority of care and services for our frail and elderly citizens – all while juggling careers, families, and a multitude of other responsibilities.  The economic value of informal, unpaid caregiving in Pennsylvania has been estimated at over $15 billion a year – more than half the Commonwealth’s current fiscal year budget.  In 2007, the national figure was estimated at $375 billion.  To put this into context, according to AARP’s Public Policy Institute, that is: 

§ More than total Medicaid spending in 2007 including both state and federal contributions for both medical and long-term care ($311 billion); 

§ As much as the total sales of the world’s largest companies in 2007, including $379 billon for Wal-Mart – which had the highest total sales of any company – and $359 billion for Exxon Mobil; and

§ Approaching the 2007 total expenditures for the Medicare program ($432 billion).  

Imagine the Commonwealth’s dire financial straits if it were not for the selfless sacrifices of our caregivers.  The fiscal burden placed on the Medicaid long-term care budget would be horrific.  It would make us yearn for our current fiscal challenges.         

Before I wrap up my remarks, I would like to point out a couple of misconceptions directed towards this legislation and Pennsylvania’s Family Caregiver Program in general.  First, let me be clear, this is not an entitlement program.  House Bill 245 does not call for nor require any additional appropriation from the Commonwealth.  Again, all this bill does is allow our local AAAs to effectively target the state funding they already receive.  Another misconception is that the program pays individuals to care for family members.  This is again not true.  Caretakers only receive reimbursement for actual care-related expenses.  They are not compensated for providing the care or services. 

We all know that the vast majority of seniors want to remain at home and age in place.  The Pennsylvania Family Caregiver Support Program provides a cost-effective way to enable seniors to do so.  It makes no sense to continue operating the program in such an inefficient manner. 

While I am pleased that the Senate Aging and Youth Committee has scheduled to take up House Bill 245 next week, our work is far from over.  Last session’s version of this legislation – House Bill 1830 – passed out of the Senate Aging and Youth Committee only to linger and die in Senate Appropriations.  Pennsylvania’s seniors deserve better this time around.  Please join me in calling on the full Senate to stand up for our seniors and caregivers and bring this much-needed bill to the Senate floor for a vote as soon as possible.  Thank you.