Assemblymember Ian C. Calderon, 57th District AB 332 – LONG-TERM CARE INSURANCE TASK FORCE BACKGROUND By 2030, when the last baby boomer turns 65, the number of Californians age 65 and older is projected to increase to almost 9 million, or about 18% of the state’s population. Recent public opinion research shows over 60 percent of working adults fear they will not be able to afford long‐term care and health care costs during their golden years. The majority of participants indicated they could not afford more than 3 months of care at a nursing facility with an average cost of $6,000 per month, while 40 percent of participants indicated they could not afford a single month of care in a nursing home. Among the Latino population, 88 percent of participants do not have long‐term care insurance and are unaware if they qualify for public benefits. A long‐term care insurance task force would be the first step towards building a robust long‐term care system in California. PREVIOUS LEGISLATION SB 1438 (Alquist) of 2012 PROBLEM In California, there are two options for the elderly to receive the care and personal assistance they need to remain in their home. The first is for seniors to meet the federal income requirements, proving they earn income at or below 100% the federal poverty level, to qualify for Medi‐Cal and/or Medicaid. By qualifying for Medi‐Cal, seniors and persons with disabilities may qualify for many programs administered by the state such as In‐Home Supportive Services (IHSS). The second option is for a person to earn and/or save enough disposable income to hire a private home care aide – at times paying an average of $30 per hour, to receive long‐term care services. Without an alternative(s) to obtain long‐term care, an individual must decide whether to spend down their assets in order to qualify for Medi‐Cal and safety net services, or to exhaust their personal assets paying for private care services. SOLUTION AB 332 will: Create the Long‐term Care Insurance Task Force to provide recommendations to the Insurance Office of Assemblymember Ian C. Calderon ▪ (UPDATED 4.3.2015) Commissioner of California on the following specified topics, among others:  Statewide insurance design for eligibility, enrollment, benefits, financing, administration, and interaction with Medi‐Cal program, among other public resources.  Evaluate how benefits could be coordinated with existing private health care coverage.  Evaluate the demands on the long‐term care workforce to meet the needs of a growing California senior population. Furthermore, membership of the task force will be appointed by the Insurance Commissioner and be comprised of the following stakeholders:  Senior health policy expert  Long‐term Care Insurance expert  Representative of the Department of Health Care Services (DHCS)  Representative of the Employment Development Department (EDD)  Employee Representative of long‐term care workers  And may include representative from relative federal, state, and local government agencies. SUPPORT SEIU California (co‐sponsor) SEIU‐ ULTCW (co‐sponsor) STATUS Introduced‐ February 13, 2014 FOR MORE INFORMATION Ryan J. Pierini Legislative Director [email protected] (916) 319‐2630 – office (916) 319‐2157 – fax AB 332 Fact Sheet ▪ Page 1