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. (more) SB 950 (Wiggins) Page 2 of ? 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 SB 950 (Wiggins) Page 3 of ? 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. SB 950 (Wiggins) Page 4 of ? 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 SB 950 (Wiggins) Page 5 of ? 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) **************