BILL NUMBER: SB 1438	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Alquist

                        FEBRUARY 24, 2012

   An act to add Section 10234.75 to the Insurance Code, relating to
insurance.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1438, as introduced, Alquist. Long-term care insurance.
   Existing law provides for the regulation of long-term care
insurance by the Insurance Commissioner and prescribes various
requirements and conditions governing the delivery of individual or
group long-term care insurance in the state. Existing law establishes
the California Partnership for Long-Term Care Program to link
private long-term care insurance and health care service plan
contracts that cover long-term care with the In-Home Supportive
Services program and Medi-Cal and to provide Medi-Cal benefits to
certain individuals who have income and resources above the
eligibility levels for receipt of medical assistance, but who have
purchased certified private long-term care insurance policies and
subsequently exhausted the benefits of these private policies.
   This bill would require the Insurance Commissioner to conduct a
study that assesses the feasibility of establishing a voluntary
insurance program for purchasing long-term care services and
supports. The bill would require the study to adopt a design for the
program, as specified, and would require the commissioner to provide
the study to the Governor and the Legislature by January 1, 2014.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature hereby finds and declares all of the
following:
   (a) A recent poll indicates that Californians, regardless of
political party or income level, are worried about the costs of
growing older. Two-thirds of respondents to the poll said that they
are apprehensive about being able to afford long-term care.
Sixty-three percent of respondents worry as much about paying for
long-term care as they do for their future health care.
   (b) A majority of respondents could not afford more than three
months of nursing home care at an average cost of $6,000 per month in
California. About 4 in 10 could not afford a single month of care at
that rate. Among Latino voters, 88 percent said they do not have
long-term care insurance or are not sure whether they are covered for
supportive services like in-home care. Nearly three-fourths of
democrats, 64 percent of independents, 62 percent of republicans, and
61 percent of voters with household incomes over $75,000 are worried
about paying for long-term care.
   (c) It is the intent of the Legislature to enact legislation that
would explore the feasibility of developing an insurance program for
long-term care services and supports.
  SEC. 2.  Section 10234.75 is added to the Insurance Code, to read:
   10234.75.  (a) The commissioner shall conduct a study that
assesses the feasibility of establishing a voluntary insurance
program for purchasing long-term care services and supports. The
study shall do all of the following:
   (1) Explore how a long-term care services and supports insurance
program could be designed to expand the options for people who become
functionally or cognitively disabled and require long-term care
services and supports.
   (2) Adopt a design for the program, including eligibility,
enrollment, benefits, financing, administration, and interaction with
the Medi-Cal program and other publicly funded resources. The design
should do all of the following:
   (A) Allow for enrollment in the program of working adults who
would make voluntary premium contributions either directly or through
payroll deductions through their employer.
   (B) To the extent feasible, require a mandatory enrollment with a
voluntary opt-out option.
   (C) Give working adults the opportunity to plan for future
long-term care needs by providing a basic insurance benefit to those
who meet work requirements and have developed functional or
equivalent cognitive limitations.
   (D) Help individuals with functional or cognitive limitations
remain in their communities by purchasing nonmedical services and
supports such as home health care and adult day care.
   (E) Help offset the costs incurred by adults with chronic and
disabling conditions. The program need not be designed to cover the
entire costs associated with an individual's long-term care needs.
   (3) Evaluate how benefits under the program would be coordinated
with existing private health care coverage benefits.
   (4) Take into account the premiums necessary to provide an
adequate benefit within a solvent program.
   (b) The commissioner may consult with the Secretary of California
Health and Human Services, the Secretary of Labor and Workforce
Development, and other officials, experts, and interested parties
while conducting this study.
   (c) The commissioner shall provide this study to the Governor and
the Legislature by January 1, 2014. The report submitted to the
Legislature shall be submitted in accordance with Section 9795 of the
Government Code.