Bill S288-2011

Creates a task force on universal long term care insurance

Creates a task force on universal long term care insurance to develop a plan for the financing and provisions for universal long term care insurance for all New Yorkers; provides that the task force shall be chaired by the director of the office for the aging; provides that such task force shall hold public hearings and issue reports.

Details

Actions

  • Jan 4, 2012: REFERRED TO INSURANCE
  • Apr 4, 2011: DEFEATED IN INSURANCE
  • Feb 22, 2011: NOTICE OF COMMITTEE CONSIDERATION - REQUESTED
  • Jan 5, 2011: REFERRED TO INSURANCE

Votes

VOTE: COMMITTEE VOTE: - Insurance - Apr 4, 2011
Ayes (4): Diaz, Espaillat, Kruger, Parker
Ayes W/R (4): Breslin, Kennedy, Peralta, Smith
Nays (10): Seward, Flanagan, Golden, Grisanti, Lanza, Larkin, LaValle, Martins, Saland, Young

Memo

BILL NUMBER:S288

TITLE OF BILL: REVISED 12/30/11 An act to amend the insurance law, in relation to creating a task force on universal long term care insurance

PURPOSE: The purpose of this bill is to ensure that every New York resident receives the protection of long term care insurance in his or her old age.

SUMMARY OF PROVISIONS: Section 1. Legislative Intent

Section 2. Amends the Insurance Law by adding a new section 1117-a. Creates a Task Force on Universal Long Term Care Insurance to be comprised of eighteen members. Such task force would develop a plan for the provision and financing of universal long term care insurance for all New Yorkers. The task force would analyze current long term care insurance offerings in the State, determine how the use of individual taxpayer contributions may be used to fund the purchase of long term care insurance for all residents and develop the benefits and mechanisms necessary for providing long term care insurance for all New Yorkers. The Director of the State Office for the Aging would serve as the chairperson of the task force. The task force would meet at least once every two months and at the call of the chairperson. In addition, the task force would issue four reports including an initial six month report, two interim reports and within 24 months of its initial meeting a final report to the Governor, Majority Leader of the Senate and the Speaker of the Assembly. The task force would also be required to hold at least six public hearings related to the issue of providing and financing long term care insurance for all New York residents. The members of the task force would not receive any compensation for their services except for any expenses they would incur in the performance of their duties.

Section 3. Effective Date

EXISTING LAW: This bill would add a new section 1117-a to the Insurance Law.

JUSTIFICATION: The age sixty-five plus population is expected to more than double between the years 2000 and 2030 to number almost seventy million nationally. Sixty percent of those who reach age sixty-five will need some form of long term care. In comparison to the State's total population increase of five and one half percent between the years 1990 and 2000, the number of individuals age eighty-five and older increased by twenty-five and one half percent and is the fastest growing segment of our population. Dynamic changes in the State's population will continue to increase as the baby boom generation reaches age sixty and continues to mature. As one would anticipate from these shifts in

demographics, the need for affordable long term care services is growing and is expected to accelerate at a dramatic rate.

In New York State, the average yearly cost of a nursing home can range from seventy thousand dollars to one hundred fifteen thousand dollars. Twenty-four hour home health care can cost more than twice this much. Many New Yorkers are unable to afford the high cost of long term care insurance and rely on Medicaid in order to pay for the costs of home health or nursing home care. New York State has an obligation to promote the general welfare of its citizens by enabling them to access the long term care they will need in their old age without having to impoverish themselves. Thereby, this bill would create a task force to develop a plan for establishing a system of mandatory long term care insurance for all New Yorkers. This approach, premised on the principal of universal coverage in exchange for universal responsibility, would ensure that every resident receives the protection of long term care insurance in his or her old age.

LEGISLATIVE HISTORY: 2011: S.288 - Defeated in Insurance/A.4049 - Referred to Insurance 2009-10: S.3127A - Amend and Recommit to Insurance/A.1666A -Amend and Recommit to Insurance 2008-07: S.3169 - Referred to Insurance/A.855 Referred to Insurance 2006: A.8907 (Similar Bill) - Passed Assembly

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: Immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 288 2011-2012 Regular Sessions IN SENATE (PREFILED) January 5, 2011 ___________
Introduced by Sen. DIAZ -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance AN ACT to amend the insurance law, in relation to creating a task force on universal long term care insurance THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Legislative findings and intent. The legislature finds and declares that the average length of life is increasing and that the population as a whole is aging. The age sixty-five plus population is expected to more than double between the years 2000 and 2030 to number almost seventy million nationally. Sixty percent of those who reach age sixty-five will need some form of long term care. In comparison to the state's total population increase of five and one-half percent between the years 1990 and 2000, the number of individuals age eighty-five and older increased by twenty-five and one-half percent and is the fastest growing segment of our population. Dynamic changes in the state's popu- lation will continue to increase as the baby boom generation reaches age sixty and continues to mature. As one would anticipate from these shifts in demographics, the need for affordable long term care services is growing and is expected to accelerate at a dramatic rate. In New York state, the average yearly cost of a nursing home can range from seventy thousand dollars to one hundred fifteen thousand dollars. Twenty-four hour home health care can cost more than twice this much. Many New Yorkers are unable to afford the high cost of long term care insurance and must rely on Medicaid to pay for the costs of home health or nursing home care. Congress recognized the public benefit of social insurance when it implemented Social Security in order to better the condition of each American at his or her retirement and thereafter. Under its constitu- tion, the state has an obligation to promote the general welfare of its
citizens by enabling them to access the care they will need in their old age without having to impoverish themselves. This act is a reflection of state concern for the lack of alternatives to Medicaid that are avail- able to the citizens of New York in order to finance the astronomical costs of long term care. Accordingly, it charges the governor and the legislature with the responsibility of creating a plan that would estab- lish a system of mandatory long term care insurance for all New Yorkers. This approach, premised on the principle of universal coverage in exchange for universal responsibility, will ensure that every resident of the state receives the protection of long term care insurance bene- fits in his or her old age. S 2. The insurance law is amended by adding a new section 1117-a to read as follows: S 1117-A. TASK FORCE ON UNIVERSAL LONG TERM CARE INSURANCE. (A) CREATION. A TASK FORCE IS HEREBY CREATED TO DEVELOP A PLAN FOR THE FINANCING AND PROVISIONS OF UNIVERSAL LONG TERM CARE INSURANCE FOR ALL RESIDENTS OF THE STATE. (B) ACTIVITIES. IN FORMULATING ITS PLAN, THE ACTIVITIES OF THE TASK FORCE SHALL INCLUDE BUT NOT BE LIMITED TO: (1) ANALYZING AND REPORTING ON THE CURRENT LONG TERM CARE INSURANCE OFFERINGS IN THE STATE, THEIR AFFORDABILITY AND THE ADEQUACY OF POLICY BENEFITS; (2) DETERMINING HOW INDIVIDUAL TAXPAYER CONTRIBUTIONS MAY BE USED TO FUND THE PURCHASE OF LONG TERM CARE INSURANCE FOR ALL RESIDENTS OF THE STATE; (3) DETERMINING AND DEVELOPING THE BENEFITS THAT SHALL BE PROVIDED WITH AN EMPHASIS ON FLEXIBILITY IN MEETING THE DESIRE OF INDIVIDUALS TO AGE IN PLACE IN THEIR HOMES; (4) DETERMINING HOW BENEFITS SHALL BE ALLOCATED; (5) DEVELOPING CRITERIA FOR INSURER PARTICIPATION; (6) DEVISING A MEANS FOR ENSURING PORTABILITY OF CONTRIBUTIONS; (7) ENSURING THE FINANCIAL STRENGTH OF PARTICIPATING INSURERS; AND (8) EVALUATING THE USE OF PRE-EXISTING MEDICAL CONDITIONS AS A BASIS FOR DENYING BENEFITS. (C) COMPOSITION. THE TASK FORCE SHALL CONSIST OF EIGHTEEN MEMBERS. THE TASK FORCE SHALL INCLUDE THE DIRECTOR OF THE OFFICE FOR THE AGING, WHO SHALL SERVE AS CHAIRPERSON OF THE TASK FORCE, AND THE FOLLOWING INDIVID- UALS OR THEIR DESIGNEES: THE SUPERINTENDENT, THE COMMISSIONER OF HEALTH, THE COMMISSIONER OF TAXATION AND FINANCE, THE COMPTROLLER, THE ATTORNEY GENERAL AND THE DIRECTOR OF THE DIVISION OF THE BUDGET. THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY SHALL EACH APPOINT THREE MEMBERS, AND THE MINORITY LEADER OF THE SENATE AND THE MINORITY LEADER OF THE ASSEMBLY SHALL EACH APPOINT ONE MEMBER, OF WHOM SIX MEMBERS SHALL BE STAKEHOLDERS FROM THE LONG TERM HEALTH CARE COMMUNITY AND THE REMAINING FIVE MEMBERS SHALL INCLUDE INDIVIDUALS WHO ARE EXPERTS IN THE FIELDS OF STATISTICS, ACTUARIAL SCIENCE, ECONOMICS, OR FISCAL AND PUBLIC POLICY, IN ADDITION TO CONSUMER RIGHTS ADVOCATES OR REPRESENTATIVES OF RETIRED PERSONS, THE ELDERLY OR LONG TERM CARE INSUR- ANCE PROVIDERS OR THEIR REPRESENTATIVES. (D) POWERS AND DUTIES. (1) THE TASK FORCE SHALL HAVE THE POWER TO RECEIVE FROM ANY DEPARTMENT, DIVISION, BOARD, BUREAU, COMMISSION, AGENCY OR OTHER INSTRUMENTALITY OF THE STATE OR OF ANY POLITICAL SUBDIVISION THEREOF SUCH ASSISTANCE AND DATA AS WILL ENABLE IT PROPERLY TO CARRY OUT ITS ACTIVITIES HEREUNDER. (2) THE TASK FORCE SHALL MEET AT LEAST ONCE EVERY TWO MONTHS, AND AT THE CALL OF THE CHAIRPERSON.
(3) THE TASK FORCE SHALL ISSUE A REPORT WITHIN SIX MONTHS AFTER ITS INITIAL MEETING DETAILING ITS PROGRESS. THE REPORT SHALL CONTAIN INFOR- MATION PERTAINING TO THE OPERATIONS OF THE TASK FORCE INCLUDING HOW MANY TIMES THE TASK FORCE HAS CONVENED, THE KEY ISSUES IT HAS CONSIDERED AT ITS MEETINGS, THE OBSTACLES IT HAS IDENTIFIED (IF ANY) AND A TIME FRAME WITH BENCH MARKS FOR DELIVERING ITS PLAN. (4) THE TASK FORCE SHALL ISSUE AN INTERIM REPORT WITHIN TWELVE MONTHS AFTER ITS INITIAL MEETING AND A SECOND INTERIM REPORT WITHIN EIGHTEEN MONTHS AFTER ITS INITIAL MEETING. THE INTERIM REPORTS SHALL CONTAIN UPDATES OF THE INFORMATION PROVIDED IN THE INITIAL REPORT AND ANY OTHER PERTINENT INFORMATION PERTAINING TO THE OPERATIONS OF THE TASK FORCE. (5) WITHIN TWENTY-FOUR MONTHS OF ITS INITIAL MEETING, THE TASK FORCE SHALL ISSUE ITS FINAL REPORT WHICH SHALL CONTAIN ITS PLAN FOR THE FINANCING AND PROVISIONS OF LONG TERM CARE INSURANCE FOR ALL RESIDENTS OF THE STATE. (6) COPIES OF THE SIX MONTH REPORT, THE INTERIM REPORTS AND THE FINAL REPORT SHALL BE SUBMITTED TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY. COPIES OF SUCH REPORTS SHALL ALSO BE MADE AVAILABLE TO THE PUBLIC AND POSTED ON THE OFFICE FOR THE AGING WEBSITE. (7) PRIOR TO ISSUING ITS FINAL REPORT, THE TASK FORCE SHALL HOLD AT LEAST SIX PUBLIC HEARINGS RELATING TO THE ISSUE OF PROVIDING AND FINANC- ING UNIVERSAL LONG TERM CARE INSURANCE FOR THE RESIDENTS OF THE STATE. THE FIRST TWO HEARINGS SHALL OCCUR WITHIN THREE MONTHS AFTER THE INITIAL MEETING OF THE TASK FORCE FOR THE PURPOSE OF INFORMATION GATHERING AND SOLICITING PUBLIC OPINION AND COMMENT. THE THIRD AND FOURTH HEARINGS, THE PURPOSE OF WHICH SHALL BE DETERMINED BY THE TASK FORCE, SHALL OCCUR WITHIN TWELVE MONTHS AFTER THE INITIAL MEETING OF THE TASK FORCE. THE LAST TWO HEARINGS SHALL OCCUR NO LATER THAN ONE MONTH AFTER THE TASK FORCE HAS COMPLETED ITS FINAL REPORT FOR THE PURPOSE OF SOLICITING PUBLIC OPINION AND COMMENT. (8) THE MEMBERS OF THE TASK FORCE SHALL RECEIVE NO COMPENSATION FOR THEIR SERVICES, BUT SHALL BE ALLOWED THEIR ACTUAL AND NECESSARY EXPENSES INCURRED IN THE PERFORMANCE OF THEIR DUTIES PURSUANT TO THIS SECTION. S 3. This act shall take effect immediately.

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