BILL ANALYSIS �
AB 487
Page 1
Date of Hearing: April 26, 2011
ASSEMBLY COMMITTEE ON VETERANS AFFAIRS
Paul J. Cook, Chair
AB 487 (Cook) - As Amended: April 4, 2011
SUBJECT : Veterans' homes: fees and charges
SUMMARY : This bill changes the fees veteran members pay for
residence and care in the Veterans Home of California. This
bill caps the fees members pay and sets an initial dollar amount
cap. Also, annually beginning January 1, 2012, this bill
requires the cap to be recalculated to reflect any changes in
the United States Department of Veterans Affairs ("USDVA")
compensation from the previous year.
Specifically, this bill initially caps the amount paid by the
member at:
(1) One thousand six hundred sixty-five dollars ($1,665)
per month for domiciliary care;
(2) One thousand eight hundred dollars ($1,800) per month
for residential care for the elderly or assisted living;
(3) Three thousand four hundred fifty dollars ($3,450) per
month for intermediate care; or
(4) Three thousand seven hundred fifty dollars ($3,750) per
month for skilled nursing care.
EXISTING LAW: Existing law provides that members of the Home
shall pay fees and charges as determined by the California
Department of Veterans' Affairs ("Department"). Under the
existing statute:
(a) The total of the individual member's fees and
charges for any fiscal year shall not be greater than:
(1) Forty-seven and one-half percent of the
member's annual income for domiciliary care;
(2) Fifty-five percent of the member's annual
income for residential care for the elderly or
assisted living;
AB 487
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(3) Sixty-five percent of the member's annual income
for intermediate care; and
(4) Seventy percent of the member's annual income for
skilled nursing care.
(b) Nonveteran spouses who become members of the home on or
after July 1, 2009, shall pay fees and charges ?, as
described in subdivision (a), or an amount equal to the
annual amount of federal per diem received for a veteran
member in domiciliary care, whichever is greater. If the
nonveteran member's income is less than the annual amount
of federal per diem for a veteran member in domiciliary
care, the nonveteran member shall pay a maximum of 90
percent of his or her annual income.
FISCAL EFFECT : Unknown.
COMMENTS : Requiring fees to be paid by members of the Veterans
Home helps offset the costs associated with the operation of the
Home. The existing sliding scale for members is based on a
percentage of income and without a cap represents a policy
choice that the member should pay a portion of the member's
income without a limit; those with higher incomes pay the same
proportion of their income but a larger dollar amount.
However, until 2009 in addition to the sliding scale there was a
cap on the residential fees for each classification of care.
The caps represented a policy choice that members should pay a
portion of their income. Those with higher incomes should pay
the same proportion of their income and a larger dollar amount,
but only up to a capped amount. The caps were $1,200 per month
for residential care, $2,300 per month for intermediate care,
and $2,500 per month for skilled nursing care.
The 2009/2010 Budget removed these caps. These changes removed
income caps for all levels of care, added a separate fee
structure for the Residential Care Facility for the Elderly
(RCFE) level of care in which the income contribution percentage
is set to 55 percent, and required non-veteran spouses to pay
either 90 percent of income up to $1,100 or $1,032 whichever is
greater. The fee caps were removed in 2009 to address a budget
deficit and because they had not been adjusted since
implementation.
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California is still in a budget deficit situation. The
Legislative Analyst's Office indicates that the deficit is
approximately $20-25 billion dollars. The caps mandated in the
bill do represent increases from the caps contained in the
previous version of this code section of approximately 50%,
furthermore, this bill provides a mechanism by which the caps
will be self-adjusting.
Related Legislation:
AB 488 (Cook) This bill amends the same code sections and
requires that the fees paid by nonveteran spouses be the same as
those paid by members.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
None on file.
Analysis Prepared by : John Spangler / V. A. / (916) 319-3550