Assembly Approves Calderon Bill Aimed at Improving California’s Long Term Care Insurance Policies
SACRAMENTO, CA – Assembly Bill 567, a measure introduced by Majority Leader Ian Calderon (D–Whittier) aimed at improving California’s long term care insurance policies, passed the Assembly Floor today with bipartisan support.
“Given the growing recognition of California’s demographic shifts, it’s critical that we research and identify strategies available to chart a successful path to long-term care stability,” stated Majority Leader Calderon. “Long term care insurance provides financial protection for families and it is in the state’s best interest to preserve access to these products.”
The share of California’s population age 65 and older is projected to grow rapidly, becoming a larger share of the population in 2030 than children under 18. More than half of this population will need long-term care services at some point in their lives. Yet, many people are unable to save enough on their own to cover the costs of long-term care.
In the U.S., long-term care costs exceeded $225 billion in 2016, up from $30 billion in 1980. About 8 million people in the U.S. have insurance with a long-term care option, according to the American Association for Long-Term Care Insurance. This insurance product helps defray the costs of long-term care services and protects lifetime savings, which makes it an essential product for many Americans.
AB 567 establishes a Long-Term Care Insurance Task Force, convened by the Insurance Commissioner. The purpose of the task force is to provide expert recommendations to the Insurance Commissioner, Legislature, and the Governor on the components necessary to establish a statewide long-term care insurance program in California.
Contact: Lerna Shirinian (562) 692-5858