BILL ANALYSIS �
AB 488
Page 1
Date of Hearing: April 26, 2011
ASSEMBLY COMMITTEE ON VETERANS AFFAIRS
Paul J. Cook, Chair
AB 488 (Cook) - As Introduced: February 15, 2011
SUBJECT : Veterans' homes: fees and charges
SUMMARY : This bill alters the fee structure for nonveteran
spouses living in the Veterans Home of California.
Specifically, this bill : mandates that nonveteran spouses
living in the home shall pay the same fees and charges as the
veteran spouse.
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.
(3) Sixty-five percent of the member's annual income for
intermediate care.
(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 based on the
level of care, as described in subdivision (a), or an amount
equal to the annual amount of federal per diem received for a
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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 : The Home has a cost associated with its operation,
and the sliding scale is based not on a fixed amount payment but
instead on a percentage of income, representing a compromise
that allows any eligible veteran access to the Home regardless
of income. Veterans may in fact be admitted to the Home with no
income, thus the program is seeking a fair share contribution
from veterans. What they must pay as a portion of their income
increases based on the level of care they receive.
However, in the case of the nonveteran spouse, he or she must
pay, not necessarily the same percentage the veteran spouse
would pay, but the same percentage or what the federal
government would pay the Department, whichever is greater. If
the nonveteran spouse's income is less than what the federal
government would pay the Department, then the nonveteran spouse
pays 90 percent of his or her income. Thus, under existing law
the nonveteran spouse may be compelled to pay more for the same
services and/or to choose between that pay structure and living
apart from his or her spouse.
Until 2009 there was a cap on the residential fees for each
classification of care. 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.
California is still in a budget deficit situation. The
Legislative Analyst's Office indicates that the current deficit
is approximately $20-25 billion dollars. This bill seeks to
reverse an action taken in the 2010 budget to assist in
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eliminating, in small part, that deficit. However, the bill
does not seek to totally eliminate fees paid by non-veteran
spouses, rather to establish that whatever is deemed a fair
share of the veteran spouse's income is also a fair share of the
nonveteran spouse's income.
The Department reports that it has concerns with the fiscal
impact of the bill because under United States Department of
Veterans' Affairs' ("USDVA") regulations the Department does not
receive any reimbursement/per diem for the non-veteran spouses.
Therefore, if nonveteran spouses pay the same rates as veterans
the Department, then the General Fund would have to bridge the
difference in cost, which the Department estimates to be
approximately 2-3 thousand dollars a month for each non-veteran
spouse.
Related Legislation:
AB 487 (Cook) This bill amends the same code sections and
reinstates dollar amount fee caps at new, increased from 2009
levels, amount. The fee caps would adjust based on a relevant
index.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
None on file.
Analysis Prepared by : John Spangler / V. A. / (916) 319-3550