BILL ANALYSIS SB 950 Page 1 Date of Hearing: June 15, 2010 ASSEMBLY COMMITTEE ON VETERANS AFFAIRS Paul J. Cook, Chair SB 950 (Wiggins) - As Introduced: February 4, 2010 SENATE VOTE : 30-0 SUBJECT : Veterans homes: accounting for charges: written notification. SUMMARY : Requires the administrators at each of California's veterans homes to provide every member of a home, upon admission, a written notice that details costs of care that may be incurred in excess of the member contribution fees, including the terms and conditions upon which the member fees and costs can be changed, and to require a signature of the veteran to acknowledge that he or she has read and understands the notice. Specifically, this bill : 1)Requires acknowledgement of the notification shall be shown by the signature of the veteran to indicate that he or she has read and understands the notification. 2)States the notification shall be written in plain, straightforward language, avoiding technical terms as much as possible, and using a coherent and easily readable style. EXISTING LAW 1)Provides for the establishment and operation of the Veterans' Home of California at various sites, and that there shall be an administrator for each home or homesite. 2)Requires the administrator of the home to provide each member of the home upon admission, with a written notice of the costs of care that may be incurred in excess of the member contribution fee. 3)Provides that the administrator of a veterans' home must provide to the member veteran a quarterly statement of all SB 950 Page 2 charges for the costs of care. FISCAL EFFECT : The Senate Appropriations Committee reported no fiscal impact. COMMENTS : According to the author, current contracts utilized by the California Department of Veterans Affairs need clarification so that veterans who desire to enter our state's veterans homes understand the terms and conditions of residing in a California Veterans Home. The author's office reports receiving many complaints from the Yountville Veterans Home after the 2009/2010 state budget changed fees and charges to current residents. The residents also complained about the lack of information regarding the possibility of financial changes in their original contracts. The author believes that 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 able to understand complex legal wording 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. 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 existing resident because it applies only to new entrants. 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. A member veteran must pay the following percentages of his or her income for services provided by a veterans' home: SB 950 Page 3 1) Residential care: 47.5 percent of income. 2) Residential care for the elderly or assisted living: 55 percent of income. 3) Intermediate Care: 65 percent of income. 4) 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. 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. 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. 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 language provided in California Government Code Section 11346.2, which applies to state agency regulations. REGISTERED SUPPORT / OPPOSITION : Support None on file. Opposition SB 950 Page 4 None on file. Analysis Prepared by : Eric Worthen / V. A. / (916) 319-3550