BILL ANALYSIS
SB 950
Page 1
Date of Hearing: June 15, 2010
ASSEMBLY COMMITTEE ON VETERANS AFFAIRS
Paul J. Cook, Chair
SB 950 (Wiggins) - As Introduced: February 4, 2010
SENATE VOTE : 30-0
SUBJECT : Veterans homes: accounting for charges: written
notification.
SUMMARY : Requires the administrators at each of California's
veterans homes to provide every member of a home, upon
admission, a written notice that details costs of care that may
be incurred in excess of the member contribution fees, including
the terms and conditions upon which the member fees and costs
can be changed, and to require a signature of the veteran to
acknowledge that he or she has read and understands the notice.
Specifically, this bill :
1)Requires acknowledgement of the notification shall be shown by
the signature of the veteran to indicate that he or she has
read and understands the notification.
2)States the notification shall be written in plain,
straightforward language, avoiding technical terms as much as
possible, and using a coherent and easily readable style.
EXISTING LAW
1)Provides for the establishment and operation of the Veterans'
Home of California at various sites, and that there shall be
an administrator for each home or homesite.
2)Requires the administrator of the home to provide each member
of the home upon admission, with a written notice of the costs
of care that may be incurred in excess of the member
contribution fee.
3)Provides that the administrator of a veterans' home must
provide to the member veteran a quarterly statement of all
SB 950
Page 2
charges for the costs of care.
FISCAL EFFECT : The Senate Appropriations Committee reported no
fiscal impact.
COMMENTS :
According to the author, current contracts utilized by the
California Department of Veterans Affairs need clarification so
that veterans who desire to enter our state's veterans homes
understand the terms and conditions of residing in a California
Veterans Home. The author's office reports receiving many
complaints from the Yountville Veterans Home after the 2009/2010
state budget changed fees and charges to current residents. The
residents also complained about the lack of information
regarding the possibility of financial changes in their original
contracts.
The author believes that 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 able to understand complex legal wording
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.
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 existing resident because it applies only to
new entrants.
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. A member veteran must pay the following percentages of
his or her income for services provided by a veterans' home:
SB 950
Page 3
1) Residential care: 47.5 percent of income.
2) Residential care for the elderly or assisted living: 55
percent of income.
3) Intermediate Care: 65 percent of income.
4) 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.
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. 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.
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
language provided in California Government Code Section 11346.2,
which applies to state agency regulations.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
SB 950
Page 4
None on file.
Analysis Prepared by : Eric Worthen / V. A. / (916) 319-3550