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
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|Policy |Insurance |Vote:|9 - 4 |
|Committee: | | | |
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|-------------+-------------------------------+-----+-------------|
| |Aging and Long Term Care | |7 - 0 |
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|-------------+-------------------------------+-----+-------------|
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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