BILL ANALYSIS Ó SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION Senator Isadore Hall, III Chair 2015 - 2016 Regular Bill No: SB 547 Hearing Date: 4/14/2015 ----------------------------------------------------------------- |Author: |Liu | |-----------+-----------------------------------------------------| |Version: |2/26/2015 | ----------------------------------------------------------------- ------------------------------------------------------------------ |Urgency: |No |Fiscal: |Yes | ------------------------------------------------------------------ ----------------------------------------------------------------- |Consultant:|Arthur Terzakis | | | | ----------------------------------------------------------------- SUBJECT: Long-term care: Assistant Secretary of Aging and Long-Term Care: Department of Community Living DIGEST: This bill establishes the Department of Community Living (DCL) within the Health and Human Services Agency to serve as the single state-level contact on issues of aging and long-term care. Additionally, this bill creates an Assistant Secretary of Aging and Long-Term Care Coordination position within the agency with specified duties and responsibilities. ANALYSIS: Existing law: 1)Establishes the California Health and Human Services Agency consisting of the Departments of Aging, Child Support Services, Community Services and Development, Developmental Services, Health Care Services, Managed Health Care, Public Health, Rehabilitation, Social Services, and State Hospitals. 2)Sets forth legislative findings and declarations regarding long-term care services, including that consumers of those services experience great differences in service levels, eligibility criteria, and service availability that often result in inappropriate and expensive care that is not responsive to individual needs. Those findings and declarations also state that the laws governing long-term care facilities have established an uncoordinated array of SB 547 (Liu) Page 2 of ? long-term care services that are funded and administered by a state structure that lacks necessary integration and focus. This bill: 1)Establishes the Department of Community Living (DCL) within the Health and Human Services Agency and creates an Assistant Secretary of Aging and Long-Term Care Coordination position within the agency, to be appointed by the Governor and confirmed by the Senate. 2)Stipulates that the DCL shall be aligned, to the extent practicable, with the federal Administration for Community Living and shall serve as the single state-level contact on issues of aging and long-term care, oversee statewide long-term care service delivery, promote coordinated long-term care service delivery and access to home and community-based services at the local and regional levels, and provide leadership and information to local agencies on best practices. 3)Also, provides that the DCL shall serve as the organizational unit designated to oversee all long-term care programs in the state and to consolidate all long-term care administered throughout all departments of the agency, including programs serving older adults and persons with disabilities. 4)Stipulates that the Assistant Secretary shall serve as liaison to the federal Administration for Community Living and be responsible for ensuring that the state maximizes the use of federal funding opportunities. Also, requires the Assistant Secretary to do all of the following: a) Consolidate data and programs pertaining to long-term care from all departments and programs within the agency; b) Coordinate and direct the establishment of the DCL and lead the development and implementation of a statewide long-term care strategic plan; c) Oversee and coordinate the integration of health care and long-term care services; d) Facilitate the coordination of long-term care services at the local level and work with rural and urban SB 547 (Liu) Page 3 of ? communities to identify infrastructure capacity issues and lead in the development of access standards for home and community-based services; and, e) Report annually to the legislative policy and fiscal committees regarding the status of long-term care in the state, the level of state spending on long-term care programs, the amount of federal funding received, progress in improving the range of services, and recommendations to enhance the overall coordination and delivery of long-term care services. 5)Additionally, requires the Assistant Secretary to develop a system wide long-term care plan that establishes the state's priorities, maximizes the use of limited resources, engages a range of stakeholders who need long-term care services and incorporates clear benchmarks and timelines for achieving the goals set forth in the plan. 6)Furthermore, stipulates that the plan shall do all of the following: a) Address the expansion of managed care in Coordinated Care Initiative counties, as defined, and the changes to, and differences in, access to health care for older and disabled adults throughout the state and development of a strategy for integrating the health care system statewide. b) Provide a review and an analysis of existing programs, services, and deficiencies as well as a plan of action for a support network for unpaid family caregivers in this state and consideration of employment-related policies and proposals to improve the support network. c) Include an analysis of workforce needs, including the training and education requirements of a long-term care workforce and a strategy for aligning the available resources to meet those needs. d) Provide directives for ensuring that the system screens individuals prior to placement in a "nursing home" or similar long-term care facility to avoid unnecessary admissions and examine how a preadmission screening program may be integrated into a managed care system and also include a discussion of best practices in other states. SB 547 (Liu) Page 4 of ? e) Contain a strategy for developing a public/private partnership to raise awareness of, and engagement in, long-term care planning. f) Identify how to educate long-term care consumers and providers, the legal system, and the public about "safe" advance directives, limited conservatorships, and affordable access to conservators. g) Address end-of-life planning issues and improvements to end-of-life care and examine model programs in various cities and counties and consider how to expand local and state-level innovations designed to address the challenges related to long-term care services delivery. Background Purpose of SB 547: According to the author's office, Senator Liu, Chair of the Senate Select Committee on Aging and Long-Term Care, led a comprehensive effort in 2014 to identify the structural, policy, and administrative changes necessary to realize an "ideal" long-term care delivery system and develop recommendations and a strategy to achieve that vision. This measure represents certain recommendations contained in the Select Committee's report titled, "A Shattered System: Reforming Long-Term Care in California." The full report addresses challenges in the current system that fall into eight issue areas and contains an overall strategy for creating a sustainable, efficient continuum of care for this and future generations of aging and disabled adults. One of the issue areas identified by the Select Committee involves "state leadership" - specifically, the Select Committee found that "California's fragmented organizational structure leaves the state with a leadership vacuum that complicates any effort to undertake comprehensive long-term care reform. Rather than develop a vision and overall strategic plan for long-term care system transformation, the state has adopted a piecemeal and reactive approach to change." The Report's suggested recommendation with respect to this issue area is as follows: "Reform the state-level administrative SB 547 (Liu) Page 5 of ? structure by naming a Long-Term Care leader (a Czar) to organize system-wide planning activities and establishing a Department of Community Living with the Health and Human Services Agency. The Department, in collaboration with other agencies and departments with relevant responsibilities, should develop a state Long-Term Care Plan to guide the priorities and implementation of aging and long-term care investments, policies, and programs statewide." California's Aging Population: According to information provided by the Senate Select Committee on Aging and Long-Term Care, California's aging population is growing rapidly and also becoming more racially and culturally diverse. The population of individuals over age 65 will increase by 27% for young retirees (aged 65-74) and 10% for mature retirees (aged 75-84) by the year 2017. In addition, the number of adults with disabilities in California is expected to grow by approximately 20% in the next 20 years. Alzheimer's disease and other dementias are on the rise and projected to affect an estimated 1.1 million Californians by 2030. Aging disproportionately impacts women; though women comprise roughly half of the population overall, by age 65 the proportion of women to men increases to almost six out of ten, and in the 85+ group, women outnumber men nearly two to one. Moreover, because women's life expectancy is longer than men's, women are more likely to outlive their resources and slip into poverty. These demographic realities constitute a social and moral imperative to plan thoughtfully for the aging of our population. At stake is the ability to age with dignity, choice, and independence for two key groups: older adults and people with disabilities who depend upon a system of long-term care (LTC) to remain as independent as possible. Unfortunately, California is not prepared to meet this demographic imperative. A person-centered, culturally responsive LTC system would enable individuals to receive services in the most affordable, home-like settings available. California was once a leader in providing services to support the full integration of older adults and persons with disabilities into community life. Over the past several years, however, the LTC system has been adversely impacted by system fragmentation, a lack of usable data, poor planning, unaddressed workforce issues, capacity SB 547 (Liu) Page 6 of ? issues, and of course devastating budget cuts during the recession. Staff Comments: Suggested technical amendment - On page 3, line 6, after the word "Senate" add the following: "Committee on Rules" Prior/Related Legislation SB 128 (Monning), 2015-16 Session. Among other things, would enact the End of Life Option Act authorizing an adult who meets certain qualifications, and who has been determined by his or her attending physician to be suffering from a terminal illness, as defined, to make a request for medication prescribed pursuant to these provisions for the purpose of ending his or her life. Also, would establish the procedures for making these requests. (Pending in Senate Appropriations Committee) AB 2014 (Berg) 2005-06 Session. Would have established a new, single department, known as the California Department of Adult and Aging Services, for the purpose of coordinating and promoting those programs that support adults who are aging or disabled so that they may remain in their homes and communities for as long as practicably possible. (Held in Senate Human Services Committee) FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No SUPPORT: California Alzheimer's Association California Association of Area Agencies on Aging California Collaborative for Long Term Services and Supports California Commission on Aging California Foundation for Independent Living Centers Congress of California Seniors Justice in Aging LeadingAge California Service Employees International Union (SEIU) United Long Term Care Workers State Independent Living Council SB 547 (Liu) Page 7 of ? OPPOSITION: California Association of Public Authorities for In-Home Supportive Services ARGUMENTS IN SUPPORT: Writing in support of SB 547, the California Retired Teachers Association states that "fractured oversight and the complexity of the administrative 'spider web' have been ongoing issues of discussion in recent years, especially with heightened interest in improving the system of long-term care. For example, nursing homes are overseen by the Department of Public Health, while residential care facilities for the elderly are under the jurisdiction of the Department of Social Services. As our population ages and requires more nuanced and specialized care, the artificial bifurcation of programs within the Administration is illogical and burdensome to navigate for seniors, their families, and caregivers. Additionally, lack of coordination between state departments has created a system with compromised transparency and accountability, meaning that bad actors regulated by one department may subsequently be licensed to run programs under the banner of a second department." The California Retired Teachers Association believes that SB 547 will improve the likelihood that community-based services will meet the needs of seniors, reducing hospitalizations and institutional placements and ultimately improving their health and well-being. ARGUMENTS IN OPPOSITION: Writing in opposition to SB 547, the California Association of Public Authorities (CAPA) has expressed concern about the bill's potential impact on the In-Home Support Services (IHSS) program. CAPA points out that the IHSS program provides personal care and domestic services to aged, blind or disabled individuals in their own homes. The purpose of the program is to allow these individuals to live safely at home rather than in costly and less desirable out-of-home placement facilities. The California Department of Social Services (CDSS) has lead responsibility for the administration of the IHSS program. CAPA notes that the IHSS program has undergone extensive changes in the past few years and that one of the most significant undertakings has been implementation of the Coordinated Care SB 547 (Liu) Page 8 of ? Initiative (CCI) which was created to improve care for California seniors and persons with disabilities who are dually eligible for both Medi-Cal and Medicare. CAPA states that even though this is a difficult population to serve its members have had a great deal of "customer" satisfaction with CDSS. CAPA emphasizes that CDSS has displayed a cooperative and thorough manner of providing assistance. CAPA believes that in light of the fact that CDSS has several other major projects underway that impact Public Authorities, the state-level reorganization of the Health and Human Services Agency called for in SB 547 is not well timed for IHSS consumers or providers. DUAL REFERRAL: Senate Health Committee