Long-term care insurance: protection against inflation.

Existing law establishes the California Partnership for Long-Term Care Program administered by the State Department of Health Care Services. The purpose of the program is 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 the Medi-Cal program and to provide Medi-Cal program 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. Existing law requires a long-term care insurance policy or a health care service plan contract, in order to be certified by the department, to contain certain provisions, including protection again loss of benefits due to inflation. Existing law requires an applicant to be offered one option that provides, at a minimum, protection against inflation that automatically increases benefit levels by 5% each year over the previous year, as specified, and at least one lower cost option. This bill would require that lower cost option to provide, at a minimum, protection against inflation that automatically increases benefit levels by 3% each year over the previous year. The bill would make related conforming changes. Existing law also authorizes the department to certify a policy with a per diem benefit of at least $100 per day for a nursing facility, residential care facility, and home care and community-based services, if the policy provides a lifetime maximum benefit of not less than $73,000. This bill would require a policy or certificate qualified for certification under these provisions to provide, at a minimum, protection against inflation that automatically increases benefit levels by 3 percent each year over the previous year. This bill would declare that it is to take effect immediately as an urgency statute.