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SACRAMENTO, CA — June 28, 2004 — Bills concerning elder abuse, nursing homes, and residential care facilities are winding their way through the California legislature. We have summarized three bills that have won the support of consumer groups and advocates for seniors.
SB 1662 would prohibit a residential care facility for the elderly (RCFE) from increasing its basic monthly rates more than once every six months. It would also require RCFEs to give 48 hours written notice of any new fees to be charged due to a change in the level of care for a resident.
As under prior law, the RCFE would still be required to provide written notice to the resident at least 60 days before a basic monthly rate increase occurs. The notice must include the amount of the increase, the reason for the increase, and a general description of the additional costs.
According to Sen. Nell Soto (D–Ontario), the author of SB 1662, some RCFEs increase the basic monthly fee for their residents every 60 days. “Some RCFEs increase the fees 15% the first time, 20% three months later, and then another 15% three months after that for a total increase of 50%,” she said. “Many of the elderly live on a fixed income and deserve to feel a sense of financial stability at this time of their lives.”
The California Department of Social Services licenses, monitors, and inspects RCFEs. Typically, an RCFE offers rooms within a house and sometimes within a large complex. RCFEs provide three meals a day, supervise medications, and may help with everyday activities such as bathing and dressing. They may also coordinate the receipt of medical care, although they are not considered medical facilities.
Existing California law establishes penalties for elder abuse when the person who commits the crime knows that the victim is over 65. AB 2611 would impose the penalty regardless of whether the perpetrator knows about the victim’s age. In the civil area, the level of proof required to show financial elder abuse would be lowered from “clear and convincing evidence” to a “preponderance of evidence.”
Groups that support AB 2611 include AARP California; Alzheimer’s Association; California Advocates for Nursing Home Reform; California Geriatric Education Center; California Senior Legislature; County Welfare Directors Association of California; Congress of California Seniors; and Peace Officers Research Association of California. As of June 22, the bill had passed the Assembly and was in the Senate awaiting referral to the Committee on the Judiciary.
Assemblywoman Wilma Chan (D–Oakland) introduced AB 2316 to help protect elderly consumers against life insurance and annuity fraud. The bill would create the Life and Annuity Consumer Protection Fund in the Department of Insurance to be funded by a $1 fee against insurers when they issue new life insurance or annuity policies. Half of the fund would be used for senior consumer protection and the other half would be distributed to district attorneys to investigate and prosecute elder fiduciary abuse.
Americans lose approximately $10 billion each year in fraudulent investments, according to the legislative analyst. People over 50 control at least 70% of the nation’s household net worth, and it is likely that the number and severity of financial abuse crimes involving the elderly will increase. Department of Insurance spokesmen say that the new fund would help the Department track down cases of financial elder abuse, increase community consumer education efforts, and greatly help district attorneys investigate elder abuse crimes.
According to Assemblywoman Chan, there were 560 senior financial abuse cases before the Department of Insurance in 2003, totaling $30.2 million in losses. In 2004, a San Diego man was convicted of defrauding 191 seniors of $13 million in phony life insurance schemes. She says that there are 95 senior abuse cases pending because of a lack of staff to investigate or prosecute.
AB 2316 is sponsored by the California Department of Insurance. Its supporters include the California District Attorneys Association, the California Advocates for Nursing Home Reform, California Health Advocates, and California Association of Homes and Services for the Aging.
You can find the full text and status of the three bills concerning elder abuse and RCFEs on the California State Senate web site. Scroll to “Bill Number,” and type in the appropriate entry. To contact your state Senators or Assemblymembers to show your support for any of these bills, see the California Legislative site. Scroll to “Find My District” on the right–hand side of the page to locate contact information for your representatives.
Please continue to check our web site for news about elder abuse cases, laws, and bills. Feel free to contact us at Brayton Purcell if you have questions about the legal rights of your elderly relative in a nursing home or residential care facility. We are experienced advocates in the areas of elder abuse, nursing home abuse, and pain management.
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