BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 332


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          Date of Hearing:  May 6, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          332 (Calderon) - As Amended April 27, 2015


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          |Policy       |Insurance                      |Vote:|9 - 4        |
          |Committee:   |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
          |-------------+-------------------------------+-----+-------------|
          |             |Aging and Long Term Care       |     |7 - 0        |
          |             |                               |     |             |
          |             |                               |     |             |
          |-------------+-------------------------------+-----+-------------|
          |             |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill requires the Insurance Commissioner to appoint a task  
          force to design a statewide long-term care (LTC) insurance  
          program.









                                                                     AB 332


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          FISCAL EFFECT:


          One-time costs for staff support for the task force of $115,000  
          a year for two years (Insurance Fund).  


          COMMENTS:


          1)Purpose. According to the author, a long-term care insurance  
            task force would be the first step towards building a robust  
            long-term care system in California.


          2)Long Term Care.  LTC services provide individuals who, because  
            of illness or disability, are generally unable to perform  
            activities of daily living, such as bathing, dressing,  
            toileting, and getting around the house, or suffer from  
            cognitive impairments.  LTC services are provided in a variety  
            of settings, such as nursing homes, assisted living  
            facilities, and private residences.  Only about 20 percent of  
            the elderly who need LTC services live in an institutional  
            setting.  


            It is well-accepted that the average American worker has  
            inadequate retirement savings.  Many people who require LTC  
            services quickly spend down their assets and become Medi-Cal  
            eligible. Medi-Cal is the primary payer of LTC services, both  
            institutional and community-based.  Informal caregiving is  
            also widespread. The LTC insurance market has struggled to  
            remain viable, and most insurers have adjusted assumptions  
            dramatically in recent years, raising premiums significantly  
            to better align revenues with expected claims.  


          








                                                                     AB 332


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          Analysis Prepared by:Lisa Murawski / APPR. / (916)  
          319-2081