BILL ANALYSIS
SENATE JUDICIARY COMMITTEE
Senator Ellen M. Corbett, Chair
2009-2010 Regular Session
SB 950 (Wiggins)
As Introduced
Hearing Date: April 20, 2010
Fiscal: Yes
Urgency: No
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SUBJECT
Veterans Homes: Accounting for Charges: Written Notification
DESCRIPTION
This bill would add a requirement to the written admission
notice provided by veteran's homes advising member veterans that
the terms and conditions upon which fees and costs of the
services provided by the veterans home can be changed. This
bill also requires that the member veteran acknowledge by
signature his or her receipt and understanding of the written
notice. This bill further requires that the written notice must
be written in plain language.
BACKGROUND
Veterans homes were established in 1935 to provide the state's
aged or disabled veterans with rehabilitative, residential, and
medical care and services in a home-like environment.
California enacted the chapter of Veterans' Home of California
(VHC) (AB 710 (Nielsen, Chapter 389, Statutes of 1935)) under
the Military and Veterans Code, which provided veterans with
protections while being housed at veterans' homes. Since then,
various provisions of this chapter have increased veteran
protections at veterans' homes. SB 1281 (Haynes, Chapter 466,
Statutes of 2002) added the requirement that a veterans' home
administrator must provide a quarterly statement showing the
costs of care. SB 1281 also added the requirement that a
veterans' home administrator must provide written notice upon
admission to a California veterans' home of costs that may be
incurred.
(more)
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In addition to the protections already contemplated by the
Legislature, this bill further protects veterans being admitted
to veterans' homes by notifying them of the possibility of
changes to their financial responsibilities, and requires the
member veterans to verify that he or she has read the written
notice and understands it. This bill will also require the
notice to be written in plain language so that the veteran
member will understand the notice and be able to acknowledge
receipt of the terms and conditions of tenancy at the veterans'
home.
This bill was approved by the Senate Veterans Affairs Committee
on April 13, 2010, by a vote of 4 to 0.
CHANGES TO EXISTING LAW
Existing law provides that the administrator of a veterans' home
must provide to the member veteran a quarterly statement of all
charges for the costs of care. (Mil. & Vet. Code Sec. 1035.6.)
Existing law provides that the administrator of a veterans' home
must provide written notice upon admission to a veteran of the
costs of care that may be incurred in excess of the member
veteran's contribution fee, as specified (the Notice). (Mil. &
Vet. Code Sec. 1035.7.)
This bill adds a requirement that the Notice must include terms
and conditions upon which the member fees and costs can be
changed.
This bill specifies that a member veteran must give a signed
acknowledgment that he or she has read the Notice and
understands it.
This bill requires that the Notice be written in plain language.
COMMENT
1. Stated need for the bill
The author writes:
The current contract utilized by the California Department of
Veterans Affairs needs clarifying so that veterans who desire
to enter our state's veterans home understand the terms and
conditions of residence. The author's office reports
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receiving many complaints from the Yountville Veterans Home
after the 2009/2010 state budget included a change in the fees
and charges to current residents and the lack of information
in their original contracts.
2. California's veterans should be given notice of changes of
terms and conditions affecting their financial
responsibilities
Veterans must be at least 62 years old or disabled to be
admitted to a veterans' home. These veterans may not be fully
aware of their financial responsibilities or be able to
understand legal jargon which typically describes such financial
responsibilities. Providing advance notice to member veterans
of these terms and conditions will allow the member veterans and
their financial caretakers to better plan for necessary
financial changes.
a. Increased fees and charges billed by the veterans' homes
will create changes in the member veterans' financial
responsibilities
As the author reports, fees and charges increased due to the
recent budget crisis. Yet, veterans receiving care in
veterans' homes were not notified of their increased financial
responsibilities. This resulted in unnecessary confusion and
turmoil for California's veterans.
This bill will not resolve the confusion of increased fees and
charges affecting veterans who are currently living in
veterans' homes because it pertains to the requirements of the
admission notice they have already received. However, the
bill does rectify this problem for future member veterans who
will get this important information when they are admitted to
the veterans' home.
b. Changes in care services will create changes in the
member veterans' financial responsibility
During a member veteran's tenancy at a veterans' home, his or
her care needs may change as well. Pursuant to Military and
Veterans Code Section 1012.3, a member veteran must pay the
following percentages of his or her income for services
provided by a veterans' home:
Residential care: 47.5 percent of income.
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Residential care for the elderly or assisted living:
55 percent of income.
Intermediate Care: 65 percent of income.
Skilled Nursing Home Care: 70 percent of income.
This means that if an elderly veteran initially is admitted
under residential care, but later requires an increased level
of care, he or she will need to pay a greater percentage of
his or her income. As the law currently stands, the veterans'
home is not required to give the member veteran advance notice
of the possibility of increased financial responsibility for
increased levels of care.
c. Changes in benefits will create changes in the member
veterans' financial responsibility
Compounding the financial complexity is the variance of
benefits a veteran may or may not be eligible for at varying
times. If a veteran receives aid and attendance (A&A)
benefits from the United States Department of Veterans
Affairs, the entire A&A amount is payable to the VHC. (Mil. &
Vet. Code Sec. 1012.2.) If a later determination results in
the loss of A&A benefits, the veteran will have to find an
alternative way to pay for his or her care. As the law
currently stands, the veterans' home is not required to give
the member veteran advance notice of the possibility of
increased financial responsibility due to decreased financial
benefits.
3. Plain language requirement is necessary
This bill would require that the admission notice be written in
plain, straightforward language in order to assist member
veterans attempting to make sense of the terms and conditions of
their financial responsibilities at the veterans' home. The
admission notice is important in helping veterans determine
their accessibility to the veterans' home and whether they need
to seek legal advice. As a result, it is appropriate to present
the information in plain language. As the author argues, the
plain language requirement provided in this bill mirrors the
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language provided in Government Code Section 11346.2, which
applies to state agency regulations.
Support : None Known
Opposition : None Known
HISTORY
Source : Author
Related Pending Legislation : None Known
Prior Legislation :
SB 1281 (Haynes, Chapter 466, Statutes of 2002) (See
Background.)
AB 710 (Nielsen, Chapter 389, Statutes of 1935) (See
Background.)
Prior Vote : Senate Veterans Affairs Committee (Ayes 4, Noes 0)
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