BILL ANALYSIS Ó AB 332 Page 1 Date of Hearing: May 6, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 332 (Calderon) - As Amended April 27, 2015 ----------------------------------------------------------------- |Policy |Insurance |Vote:|9 - 4 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | |Aging and Long Term Care | |7 - 0 | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- 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 Page 2 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 Page 3 Analysis Prepared by:Lisa Murawski / APPR. / (916) 319-2081