BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 332 (Calderon) - Long-term care insurance
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|Version: June 15, 2015 |Policy Vote: INS. 6 - 1 |
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|Urgency: No |Mandate: No |
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|Hearing Date: July 6, 2015 |Consultant: Brendan McCarthy |
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This bill does not meet the criteria for referral to the
Suspense File.
Bill
Summary: AB 332 would create a task force within the Department
of Insurance to examine issues relating to long-term care
insurance.
Fiscal
Impact: One-time costs of $115,000 per year for two years to
provide staff support to the task force (Insurance Fund). The
bill prohibits the payment of per diems or other compensation
for participation by task force members.
Background: Long-term care supports and services are nonmedical services
that are needed when an individual is not capable of performing
the normal activities of daily living. Long-term term care
services can be provided in an individual's home or can be
provided in a facility, such as a skilled nursing facility.
Long-term care insurance is available in the state, but a
relatively small portion of the population has such coverage. In
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recent years, due to increasing claims and declining
participation by consumers, the premium costs for long-term care
insurance have increased, further reducing participation.
For individuals who do not have long-term care insurance, when
such care is needed they must either spend their own money for
such services or (if they meet income and asset requirements)
apply for public coverage through the Medi-Cal program. It is
common for individuals who need long-term care services to
"spend down" their savings and income on needed long-term care
services until they qualify for Medi-Cal.
Proposed Law:
AB 332 would create a task force within the Department of
Insurance to examine issues relating to long-term care
insurance. The bill would specify the membership of the task
force, including state agency directors, gubernatorial
appointments, and appointments by the Speaker of the Assembly
and the President pro Tempore of the Senate. The bill would
specify the issues to be addressed by the task force and require
the task force to report to the Governor and the Legislature by
January 1, 2017.
Related
Legislation: SB 1438 (Alquist, 2012) was similar to this bill.
That bill was held on this committee's Suspense File.
Staff
Comments: The bill requires the Department of Insurance and
other state departments to implement the bill within existing
budgetary resources. While this requirement would likely prevent
the Department of Insurance from requesting additional funding
through the annual budget act, the Department will still incur
costs to provide staff support to the task force. Precluding
additional funding will likely result in other mandated
activities being delayed by the Department.
The bill requires the task force to report to the Governor and
the Legislature by January 1, 2017. Given the time it will take
to appoint the members of the task force and the time necessary
to adequately consider the policy issues required in the bill, a
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deadline of January 1, 2017 is probably not feasible.
Recommended
Amendments: Staff recommends the bill be amended to delay the
deadline for providing the report until July 1, 2017. Staff also
recommends a technical amendment to require appointment of one
of the task force members to be made by the Senate Rules
Committee rather than the President pro Tempore, per Senate
policy.
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