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CA Department of Insurance
CA Department of Insurance
CA Department of Insurance

Long Term Care Insurance Task Force

Background

Recent public opinion research indicates that Californians, regardless of political party or income level, are worried about the costs of growing older. Two-thirds of respondents in the research 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.

A majority of respondents could not afford more than three months of nursing home care at an average cost of six thousand dollars ($6,000) per month in California. About four in 10 respondents 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. Concerns about paying for long-term care cut across all income levels and all partisan affiliations.

About the Long Term Care Insurance Task Force

The passage of AB 567 (Calderon) established the Long Term Care Insurance Task Force (Task Force) in the California Department of Insurance to explore the feasibility of developing and implementing a culturally competent statewide insurance program for long-term care services and supports.

The objectives of the Task Force include all of the following:

  • Explore how a statewide long-term care insurance program could be designed and implemented to expand the options for people who are interested in insuring themselves against the risk of costs associated with functional or cognitive disability, and require long-term care, services, and supports.
  • Explore options for the design of the program, including eligibility, enrollment, benefits, financing, administration, and interaction with the Medi-Cal program and other publicly funded resources. In exploring these options, the task force shall consider all of the following:
    • Whether and how a long-term care insurance program could be included as a benefit in the state disability insurance program structure, possibly through a nominal increase in the payroll tax, and whether the program could be structured in the same manner as Paid Family Leave benefits.
    • Allowing for enrollment in the program of working adults who would make voluntary premium contributions either directly or through payroll deductions through their employer.
    • To the extent feasible, requiring a mandatory enrollment with a voluntary opt-out option.
    • Giving 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.
    • Helping individuals with functional or cognitive limitations remain in their communities by purchasing nonmedical services and supports, including home health care and adult daycare.
    • Helping offset the costs incurred by adults with chronic and disabling conditions. The program need not be designed to cover the entire cost associated with an individual’s long-term care needs.
  • Evaluate how benefits under the program would be coordinated with existing private health care coverage benefits.
  • Evaluate the demands on the long-term care workforce as the need for long-term care in California grows, and how the long-term care workforce can be prepared to meet those demands.
  • Consider the establishment of a joint public and private system to make long-term care accessible to as many individuals within California as possible.
  • Make recommendations related to key regulatory provisions necessary for the public to access existing long-term care insurance programs and participate in future long-term care insurance programs, whether those programs are recommended by the task force or otherwise.

Reports

The Task Force shall recommend options for establishing a statewide long-term care insurance program and comment on the respective degrees of feasibility of those options in a report submitted to the commissioner, the Governor, and the Legislature on or before January 1, 2023. The report submitted to the Legislature shall be submitted in accordance with Section 9795 of the Government Code.

After the completion of the Feasibility Report, and to ensure an adequate benefit within a solvent program, the department will, no later than January 1, 2024, produce an actuarial report of the recommendations made by the Task Force. The report shall be shared with and approved by the members of the Task Force. If approved the report shall be submitted to the Legislature.

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Task Force Members

The Task Force consists of the following 15 voting members:

  1. The commissioner, or the commissioner’s designee, who shall serve as the chair of the task force.
  2. The Director of Health Care Services, or the director’s designee.
  3. The Director of the Department of Aging, or the director’s designee.
  4. Four persons appointed by the Governor, as follows:
    1. A certified actuary with expertise in long-term care insurance.
    2. A nongovernment health policy expert.
    3. A representative of a long-term care provider association.
    4. A representative of a senior or consumer organization.
  5. One person, appointed by the Speaker of the Assembly, from an employee representative organization that represents long-term care workers.
  6. One person, appointed by the Senate Committee on Rules, from the long-term care insurance industry.
  7. Six persons appointed by the commissioner, as follows:
    1. A representative of residential care facilities for the elderly.
    2. A representative of adult day services providers.
    3. A representative of hospice and palliative care providers.
    4. A representative of long-term care health professionals.
    5. A representative of independent providers of in-home personal care services.
    6. A representative of family caregivers.

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Meeting Dates and Materials

Meetings of the Task Force are open to the public. Please check back for future meeting dates and materials. 

For questions, please contact Amanda Bastidas at CDIBoards@insurance.ca.gov

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