BILL ANALYSIS
SB 950
Page 1
Date of Hearing: June 22, 2010
ASSEMBLY COMMITTEE ON JUDICIARY
Mike Feuer, Chair
SB 950 (Wiggins) - As Introduced: February 4, 2010
PROPOSED CONSENT (As Proposed to Be Amended)
SENATE VOTE : 30-0
SUBJECT : VETERANS HOMES: ACCOUNTING FOR CHARGES: WRITTEN
NOTIFICATION
KEY ISSUE : SHOULD THE WRITTEN NOTICE CURRENTLY PROVIDED TO A
RESIDENT OF A VETERANS HOME BE MODIFIED TO ADVISE THAT THE TERMS
AND CONDITIONS UPON WHICH THE RESIDENT VETERAN'S FEES AND COSTS
CAN BE CHANGED?
FISCAL EFFECT : As currently in print this bill is keyed fiscal.
SYNOPSIS
This non-controversial bill is intended to protect veterans
admitted to veterans' homes ("members" of the home) by ensuring
they are aware of the possibility of changes to their financial
responsibilities to the home. Specifically, this bill requires
the terms and conditions upon which the veteran member's fees
and costs can be changed to be included in the notice that the
administrator of a veteran's home is required to provide to
every veteran upon his or her admission into the home. In
addition, this bill requires 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 residency at the veterans' home, and also requires the
veteran to sign the notice acknowledging that he or she has read
and understands the written notice. As proposed to be amended,
this bill would also require a copy of the notification to be
conspicuously posted at each veterans home so that current
members of the home living on the premises will also have access
to the disclosure of the terms and conditions required by this
bill for the first time. The author believes that this modest
requirement to post a copy of the notification at each veterans
home will help inform current members of those homes at a much
lower cost than the alternative of mailing the revised notice to
all existing members of veterans' homes. This bill passed in
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the Senate by a 30-0 vote and has no opposition.
SUMMARY : Improves the content and clarity of the written notice
that the administrator of a veteran's home is required to
provide to every veteran upon his or her admission into the
veterans' home. Specifically, this bill :
1)Requires that the notice must include the terms and conditions
upon which the member fees and costs can be changed.
2)Requires the member veteran to sign the notice to acknowledge
that the member has read and understands the notice.
3)Requires the notice to be written in plain, straightforward
language, with few technical terms and using a coherent and
easily readable style.
4)Requires the veteran home to post a copy of the notice in the
home and each time it is changed.
EXISTING LAW:
1)Requires the administrator of a veterans' home to provide the
member veteran a quarterly statement or accounting of all
charges for the costs of care rendered to the member in excess
of and not covered by the member contribution fee, including,
but not limited to, the unreimbursed costs of medical or
dental services rendered to the member, either by the home or
under contract with the home. (Military & Veterans Code
Section 1035.6.)
2)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. Furthermore, the notice shall:
a) Include an explanation of circumstances under which the
member may incur costs that are in excess of the
contribution fee.
b) Specifically indicate that these excess costs of care
are costs in addition to, or above and beyond, the member
contribution fee.
c) Provide examples of "excess costs of care that are
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frequently incurred by veterans."
d) Inform the member that he or she will receive a
quarterly accounting statement of the total excess costs of
care, but that the statement is provided for informational
purposes only.
e) Inform the veteran that, if he or she is a resident of
the home at the time of death, the home may disburse his or
her moneys or personal property for payment of unreimbursed
excess costs of care.
f) Include a statement advising the member to seek counsel
from a legal expert to protect his or her assets.
(Military & Veterans Code Section 1035.7.)
COMMENTS : This non-controversial bill is intended to protect
veterans admitted to veterans' homes ("members" of the home) by
ensuring they are aware of the possibility of changes to their
financial responsibilities to the home. Specifically, this bill
requires the terms and conditions upon which the veteran
member's fees and costs can be changed to be included in the
notice that the administrator of a veteran's home is required to
provide to every veteran upon his or her admission into the
home. In addition, this bill requires 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 residency at the veterans' home, and also requires
the veteran to sign the notice acknowledging that he or she has
read and understands the written notice.
Author's Statement : According to the author, this bill is
intended to address the problem of insufficient notice of key
terms and conditions of residence in veterans' homes,
particularly those that could result in increased fees being
charged to a member veteran unbeknownst to the veteran, or after
the veteran dies, charged to the veteran's family. The author
explains:
The current contract utilized by the California Department
of Veterans Affairs needs clarifying so that veterans who
desire to enter our state's veterans' homes understand the
terms and conditions of residence. The author's office
reports receiving many complaints from the Yountville
Veterans Home after the 2009/2010 state budget included a
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change in the fees and charges to current residents, and
the lack of information in their original contracts.
As proposed to be amended, this bill requires the notification
to be posted at each veterans' home for the benefit of current
residents. According to Senate Judiciary Committee analysis,
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." This could potentially
result in current veterans residing at the home being more
uninformed about these important terms and conditions than
prospective members who would receive the improved admission
notice under this bill. As proposed to be amended, this bill
would also require a copy of the notification to be
conspicuously posted at each veterans home so that current
members of the home living on the premises will also have access
to the disclosure of the terms and conditions required by this
bill for the first time. The author believes that this modest
requirement to post a copy of the notification at each veterans
home will help inform current members of those homes at a much
lower cost than the alternative of mailing the revised notice to
all existing members of veterans' homes. The amendment reads:
On page 2, after line 31, insert:
(d) A copy of the notification, containing all of the
information specified in subdivision (a) and titled
in large font "NOTICE TO RESIDENTS", shall be
conspicuously posted in each veterans' home by the
administrator of the veterans' home.
Veterans deserve 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. There are
a number of factors that can create changes in the veteran's
financial responsibilities, including: (1) increased fees and
charges billed by the veterans' home; (2) changes in care
services; and (3) changes in veterans' benefits. Providing
advance notice to member veterans of these terms and conditions
will allow these veterans and their financial caretakers to
better plan for necessary financial changes.
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First, due to the recent budget crisis, some veterans' homes
have apparently found it necessary to increase fees. This bill
seeks to prevent unnecessary confusion among California's
veterans receiving care in veterans' homes by providing
notification of increased financial responsibilities that may
result.
Second, a member veteran's care needs may change as well during
his or her time at a veterans' home. 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.
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.
Finally, changes in benefits may complicate the member's
financial responsibility. Compounding the financial complexity
is the variety of benefits a veteran may or may not be eligible
for at different times. For example, 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
California veterans' home administration. (Military and
Veterans Code Section 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. This bill will
provide member veterans with some advance notice of the
possibility of increased financial responsibility due to
decreased financial benefits.
Previous Legislation : SB 1281 (Haynes, Chapter 466, Statutes of
2002) required a veterans' home administrator to provide a
quarterly statement showing the costs of care, as well as
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written notice, upon admission to a California veterans' home,
of costs that may be incurred by the veteran.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file
Opposition
None on file
Analysis Prepared by : Anthony Lew / JUD. / (916) 319-2334