BILL ANALYSIS                                                                                                                                                                                                    






                             SENATE JUDICIARY COMMITTEE
                           Senator Ellen M. Corbett, Chair
                              2009-2010 Regular Session


          SB 950 (Wiggins)
          As Introduced
          Hearing Date: April 20, 2010
          Fiscal: Yes
          Urgency: No
          TW
                    

                                        SUBJECT
                                           
           Veterans Homes:  Accounting for Charges:  Written Notification

                                      DESCRIPTION  

          This bill would add a requirement to the written admission  
          notice provided by veteran's homes advising member veterans that  
          the terms and conditions upon which fees and costs of the  
          services provided by the veterans home can be changed.   This  
          bill also requires that the member veteran acknowledge by  
          signature his or her receipt and understanding of the written  
          notice.  This bill further requires that the written notice must  
          be written in plain language.

                                      BACKGROUND  

          Veterans homes were established in 1935 to provide the state's  
          aged or disabled veterans with rehabilitative, residential, and  
          medical care and services in a home-like environment.   
          California enacted the chapter of Veterans' Home of California  
          (VHC) (AB 710 (Nielsen, Chapter 389, Statutes of 1935)) under  
          the Military and Veterans Code, which provided veterans with  
          protections while being housed at veterans' homes.  Since then,  
          various provisions of this chapter have increased veteran  
          protections at veterans' homes.  SB 1281 (Haynes, Chapter 466,  
          Statutes of 2002) added the requirement that a veterans' home  
          administrator must provide a quarterly statement showing the  
          costs of care.  SB 1281 also added the requirement that a  
          veterans' home administrator must provide written notice upon  
          admission to a California veterans' home of costs that may be  
          incurred.

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          In addition to the protections already contemplated by the  
          Legislature, this bill further protects veterans being admitted  
          to veterans' homes by notifying them of the possibility of  
          changes to their financial responsibilities, and requires the  
          member veterans to verify that he or she has read the written  
          notice and understands it.  This bill will also require the  
          notice to be written in plain language so that the veteran  
          member will understand the notice and be able to acknowledge  
          receipt of the terms and conditions of tenancy at the veterans'  
          home.

          This bill was approved by the Senate Veterans Affairs Committee  
          on April 13, 2010, by a vote of 4 to 0.

                                CHANGES TO EXISTING LAW
           
           Existing law  provides that the administrator of a veterans' home  
          must provide to the member veteran a quarterly statement of all  
          charges for the costs of care.  (Mil. & Vet. Code Sec. 1035.6.)

           Existing law  provides that the administrator of a veterans' home  
          must provide written notice upon admission to a veteran of the  
          costs of care that may be incurred in excess of the member  
          veteran's contribution fee, as specified (the Notice).  (Mil. &  
          Vet. Code Sec. 1035.7.)

           This bill  adds a requirement that the Notice must include terms  
          and conditions upon which the member fees and costs can be  
          changed.

           This bill  specifies that a member veteran must give a signed  
          acknowledgment that he or she has read the Notice and  
          understands it.

           This bill  requires that the Notice be written in plain language.
          
                                        COMMENT
           
          1.  Stated need for the bill  
          
          The author writes:
          
            The current contract utilized by the California Department of  
            Veterans Affairs needs clarifying so that veterans who desire  
            to enter our state's veterans home understand the terms and  
            conditions of residence.  The author's office reports  
                                                                      



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            receiving many complaints from the Yountville Veterans Home  
            after the 2009/2010 state budget included a change in the fees  
            and charges to current residents and the lack of information  
            in their original contracts.
          
          2.  California's veterans should be given notice of changes of  
            terms and conditions affecting their financial  
            responsibilities
           
          Veterans must be at least 62 years old or disabled to be  
          admitted to a veterans' home.   These veterans may not be fully  
          aware of their financial responsibilities or be able to  
          understand legal jargon which typically describes such financial  
          responsibilities.  Providing advance notice to member veterans  
          of these terms and conditions will allow the member veterans and  
          their financial caretakers to better plan for necessary  
          financial changes.

             a.    Increased fees and charges billed by the veterans' homes  
               will create changes in the member veterans' financial  
               responsibilities

             As the author reports, fees and charges increased due to the  
            recent budget crisis.  Yet, veterans receiving care in  
            veterans' homes were not notified of their increased financial  
            responsibilities.  This resulted in unnecessary confusion and  
            turmoil for California's veterans. 

            This bill will not resolve the confusion of increased fees and  
            charges affecting veterans who are currently living in  
            veterans' homes because it pertains to the requirements of the  
            admission notice they have already received.  However, the  
            bill does rectify this problem for future member veterans who  
            will get this important information when they are admitted to  
            the veterans' home.

             b.    Changes in care services will create changes in the  
               member veterans' financial responsibility 
           
            During a member veteran's tenancy at a veterans' home, his or  
            her care needs may change as well.  Pursuant to Military and  
            Veterans Code Section 1012.3, a member veteran must pay the  
            following percentages of his or her income for services  
            provided by a veterans' home:

                     Residential care: 47.5 percent of income. 
                                                                      



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                     Residential care for the elderly or assisted living:  
                 55 percent of income. 


                     Intermediate Care: 65 percent of income. 


                     Skilled Nursing Home Care: 70 percent of income.

            This means that if an elderly veteran initially is admitted  
            under residential care, but later requires an increased level  
            of care, he or she will need to pay a greater percentage of  
            his or her income.  As the law currently stands, the veterans'  
            home is not required to give the member veteran advance notice  
            of the possibility of increased financial responsibility for  
            increased levels of care. 

             c.    Changes in benefits will create changes in the member  
               veterans' financial responsibility 
           
            Compounding the financial complexity is the variance of  
            benefits a veteran may or may not be eligible for at varying  
            times.  If a veteran receives aid and attendance (A&A)  
            benefits from the United States Department of Veterans  
            Affairs, the entire A&A amount is payable to the VHC.  (Mil. &  
            Vet. Code Sec. 1012.2.)   If a later determination results in  
            the loss of A&A benefits, the veteran will have to find an  
            alternative way to pay for his or her care.   As the law  
            currently stands, the veterans' home is not required to give  
            the member veteran advance notice of the possibility of  
            increased financial responsibility due to decreased financial  
            benefits.

          3.   Plain language requirement is necessary
           
          This bill would require that the admission notice be written in  
          plain, straightforward language in order to assist member  
          veterans attempting to make sense of the terms and conditions of  
          their financial responsibilities at the veterans' home.  The  
          admission notice is important in helping veterans determine  
          their accessibility to the veterans' home and whether they need  
          to seek legal advice.  As a result, it is appropriate to present  
          the information in plain language.  As the author argues, the  
          plain language requirement provided in this bill mirrors the  
                                                                      



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          language provided in Government Code Section 11346.2, which  
          applies to state agency regulations. 
          

           Support  :  None Known

           Opposition  :  None Known

                                        HISTORY
           
           Source  :  Author

           Related Pending Legislation  :  None Known

           Prior Legislation  :

          SB 1281 (Haynes, Chapter 466, Statutes of 2002) (See  
          Background.)

          AB 710 (Nielsen, Chapter 389, Statutes of 1935) (See  
          Background.)

           Prior Vote  :  Senate Veterans Affairs Committee (Ayes 4, Noes 0)

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