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  








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            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:









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             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
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          None on file.

           Analysis Prepared by  :    Eric Worthen / V. A. / (916) 319-3550