BILL ANALYSIS Ó
AB 1823
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Date of Hearing: April 10, 2012
ASSEMBLY COMMITTEE ON VETERANS AFFAIRS
Paul J. Cook, Chair
AB 1823 (Yamada) - As Introduced: February 21, 2012
SUBJECT : Veterans' homes: accounting for charges
SUMMARY : This bill makes changes to the content of the
statement for fees and charges that is presented to residents of
the Veterans home. Specifically, this bill : Specifies that
residents' quarterly statements shall include, in clear terms,
all of the following:
(1) A statement that the charges for the excess costs of
care are provided to the member for information purposes
only.
(2) A statement that, if the veteran is a resident of the
home at the time of death, the home may use his or her
money or personal property that is in possession of the
home for payment of unreimbursed excess costs of care.
(3) A statement that advises the member to seek counsel from
a legal expert to protect his or her assets.
(4) The terms and conditions upon which the member's fees
and costs can be changed.
EXISTING LAW
(1) A member of a veterans' home is required to pay fees and
charges as determined by the Department of Veterans
Affairs.
(2) Upon admission to a California veterans' home, the
administrator of each home must provide written notice to
the veteran informing him or her of costs of care that may
be incurred in excess of the member contribution fee. The
notification must:
a. Include an explanation of circumstances under
which the member may incur costs that are in excess of
the contribution fee.
b. Specifically indicate that these excess costs
AB 1823
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of care are costs in addition to, or above and beyond,
the member contribution fee.
c. Provide examples of "excess costs of care that
are frequently incurred by veterans."
d. Inform the member that he or she will receive
a quarterly accounting statement of the total excess
costs of care, but that the statement is provided for
informational purposes only.
e. Inform the veteran that, if he or she is a
resident of the home at the time of death, the home
may disburse his or her moneys or personal property
for payment of unreimbursed excess costs of care.
f. Include a statement advising the member to
seek counsel from a legal expert to protect his or her
assets.
g. Include the terms and conditions upon which
the member fees and costs can be changed.
h. The notification shall require the signature
of the veteran that acknowledges that he or she has
read and understands the notification.
i. The notification shall be written in plain,
straightforward language, avoiding technical terms as
much as possible, and using a coherent and easily
readable style.
j. A copy of the notification, containing all the
information specified in subdivision (a) and titled in
large font "NOTICE TO RESIDENTS," shall be
conspicuously posted in each veterans home by the
administrator of the veterans home.
(3) The administrator of the home must provide each member
with a quarterly statement or accounting of all charges for
the costs of care rendered to the member in excess of the
member fee, as defined.
(4) The department may recover costs from the estate of the
veteran for payment of funeral expenses or any obligation
owed to the home, including the cost of any care rendered
by the home in excess of the fees paid by the veteran to
the home. Any funds of the deceased veteran representing
the cost of care rendered by the home in excess of the fees
paid by the veteran to the home shall be paid to the
Morale, Welfare, and Recreation Fund. This subdivision
applies only to veterans becoming members of the home on or
after January 1, 1984.
AB 1823
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FISCAL EFFECT : Unknown at this time.
COMMENTS : Residents are already given a notice substantially
similar to the one contemplated in the bill when they become a
member of the home. The notice is also permanently posted in
the home. However, most of the residents of the home are
elderly and/or disabled and they might benefit from additional
reminders located on their quarterly statements. The additional
burden/cost of adding the advisory language to the bill, while
outside the scope of this committee's analysis, seems likely to
be relatively small and the language might bring some peace of
mind and/or avoid surprises for the residents. It will also
give residents more opportunities to plan the disposition of
their assets should they wish to do so.
REGISTERED SUPPORT / OPPOSITION :
Support
AMVETS, Department of California
12 individuals from northern California
Opposition
None at this time.
Analysis Prepared by : John Spangler / V. A. / (916) 319-3550