Amended in Senate June 15, 2015

Amended in Assembly April 27, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 332


Introduced by Assembly Member Calderon

(Coauthor: Assembly Member Brown)

February 13, 2015


An act to add and repeal Section 10234.75 of the Insurance Code, relating to insurance.

LEGISLATIVE COUNSEL’S DIGEST

AB 332, as amended, Calderon. Long-term care insurance.

Existing law provides for the regulation of long-term care insurance by the Insurance Commissioner and prescribes various requirements and conditions governing the delivery of individual or group long-term care insurance in the state. Existing law establishes the California Partnership for Long-Term Care Program to link private long-term care insurance and health care service plan contracts that cover long-term care with the In-Home Supportive Services program and Medi-Cal and to provide Medi-Cal benefits to certain individuals who have income and resources above the eligibility levels for receipt of medical assistance, but who have purchased certified private long-term care insurance policies.

This bill wouldbegin delete require the Insurance Commissioner to convene a task forceend deletebegin insert establish the Long Term Care Insurance Task Force in the Department of Insurance, chaired by the Commissioner or his or her designee, andend insert composed of specified stakeholders and representatives of government agencies to examine the components necessary to designbegin insert and implementend insert a statewide long-term care insurance program, as specified. The bill would require the task force to recommend options for establishing this program and to comment on their respective degrees of feasibility in a report submitted to the commissioner, the Governor, and the Legislature by January 1, 2017.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

The Legislature hereby finds and declares all of
2the following:

3(a) Recent public opinion research indicates that Californians,
4regardless of political party or income level, are worried about the
5costs of growing older. Two-thirds of respondents in the research
6said that they are apprehensive about being able to afford long-term
7care. Sixty-three percent of respondents worry as much about
8paying for long-term care as they do for their future health care.

9(b) A majority of respondents could not afford more than three
10months of nursing home care at an average cost of six thousand
11dollars ($6,000) per month in California. About 4 in 10 respondents
12could not afford a single month of care at that rate. Among Latino
13voters, 88 percent said they do not have long-term care insurance
14or are not sure whether they are covered for supportive services
15like in-home care. Concerns about paying for long-term care cut
16across all income levels and all partisan affiliations.

17(c) It is the intent of the Legislature to enact legislation
18establishing a task force to explore the feasibility of developing
19and implementing a culturally competent statewide insurance
20program for long-term care services and supports.

21

SEC. 2.  

Section 10234.75 is added to the Insurance Code, to
22read:

23

10234.75.  

(a) Thebegin delete commissioner shall convene a task force to
24examine the components necessary to design a statewide long-term
25care insurance program. The task force shall do all of the following:end delete

26begin insert Long Term Care Insurance Task Force (the task force) is hereby
27created in the Department of Insurance. Under the leadership of
28the Commissioner, the task force shall examine the components
29necessary to design and implement a statewide long-term care
30insurance program.end insert

begin insert

P3    1(b) The task force shall consist of the following nine voting
2members:

end insert
begin insert

3(1) The Commissioner, or his or her designee, who shall serve
4as the chair of the task force.

end insert
begin insert

5(2) The Director of Health Care Services, or his or her designee.

end insert
begin insert

6(3) The Director of the Department of Aging, or his or her
7designee.

end insert
begin insert

8(4) Four persons appointed by the Governor, as follows:

end insert
begin insert

9(A) A certified actuary with expertise in long-term care
10insurance.

end insert
begin insert

11(B) A nongovernment health policy expert.

end insert
begin insert

12(C) A representative of a long-term care provider association.

end insert
begin insert

13(D) A representative of a senior or consumer organization.

end insert
begin insert

14(5) One person, appointed by the Speaker of the Assembly, from
15an employee representative organization that represents long-term
16care workers.

end insert
begin insert

17(6) One person, appointed by the President pro Tempore of the
18Senate, from the long-term care insurance industry.

end insert
begin insert

19(c) A task force member shall not receive a per diem or other
20similar compensation for serving as a member of the task force.

end insert
begin insert

21(d) The Bagley-Keene Open Meeting Act (Article 9 (commencing
22with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title
232 of the Government Code) applies to meetings of the task force.

end insert
begin insert

24(e) The task force shall do all of the following:

end insert

25(1) Explore how a statewide long-term care insurance program
26could be designed and implemented to expand the options for
27people who are interested in insuring themselves against the risk
28of costs associated with functional or cognitive disability, and
29require long-term care, services, and supports.

30(2) Explore options for the design of the program, including
31eligibility, enrollment, benefits, financing, administration, and
32interaction with the Medi-Cal program and other publicly funded
33resources. In exploring these options, the task force shall consider
34all of the following:

35(A) Whether and how a long-term care insurance program could
36be included as a benefit in the state disability insurance program
37structure, possibly through a nominal increase in the payroll tax,
38and whether the program could be structured in the same manner
39as Paid Family Leave benefits.

P4    1(B) Allowing for enrollment in the program of working adults
2who would make voluntary premium contributions either directly
3or through payroll deductions through their employer.

4(C) To the extent feasible, requiring a mandatory enrollment
5with a voluntary opt-out option.

6(D) Giving working adults the opportunity to plan for future
7long-term care needs by providing a basic insurance benefit to
8those who meet work requirements and have developed functional
9or equivalent cognitive limitations.

10(E) Helping individuals with functional or cognitive limitations
11remain in their communities by purchasing nonmedical services
12and supports such as home health care and adult day care.

13(F) Helping offset the costs incurred by adults with chronic and
14disabling conditions. The program need not be designed to cover
15the entire cost associated with an individual’s long-term care needs.

16(3) Evaluate how benefits under the program would be
17coordinated with existing private health care coverage benefits.

18(4) Take into account the premiums necessary to provide an
19adequate benefit within a solvent program.

20(5) Evaluate the demands on the long-term care workforce as
21the need for long-term care in California grows, and how the
22long-term care workforce can be prepared to meet those demands.

begin insert

23(6) Consider the establishment of a joint public and private
24system to make long-term care accessible to as many individuals
25within California as possible.

end insert
begin insert

26(7) Make recommendations related to key regulatory provisions
27necessary for the public to access existing long-term care insurance
28programs and participate in future long-term care insurance
29programs, whether those programs are recommended by the task
30force or otherwise.

end insert
begin delete

32 31(b) The task force shall be composed of key senior health policy
32and long-term care insurance stakeholders, at least one
33representative from the State Department of Health Care Services,
34at least one representative from the Employment Development
35Department, and at least one representative from a labor union
36representing long-term care workers. The task force may include
37representatives from other relevant federal, state, and local
38government agencies.

end delete
begin delete

P4   1 39(c)

end delete

P5    1begin insert(f)end insert The department shall operate within its existing budgetary
2resources for purposes of implementing this section. Any
3governmental agency that participates in the task force shall operate
4within its existing budgetary resources for purposes of that
5participation.

begin delete

6 6(d)

end delete

7begin insert(g)end insert The task force shall recommend options for establishing a
8statewide long-term care insurance program and comment on the
9respective degrees of feasibility of those options in a report
10submitted to the commissioner, the Governor, and the Legislature
11on or before January 1, 2017. The report submitted to the
12Legislature shall be submitted in accordance with Section 9795 of
13the Government Code.

begin delete

13 14(e)

end delete

15begin insert(h)end insert The commissioner may seek private funds for purposes of
16implementing this section.

begin delete

15 17(f)

end delete

18begin insert(i)end insert This section shall remain in effect only until January 1, 2019,
19and as of that date is repealed, unless a later enacted statute, that
20is enacted before January 1, 2019, deletes or extends that date.



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