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April 8, 2024

Senator Marie Alvarado-Gil, Chair
Senate Committee on Human Services
1020 N Street, Room 521
Sacramento, CA 95814

sent via CA Legislature Letter Portal

RE: SB 1406 (Allen) – Residential Care Facility for the Elderly Rate Increases – Support

Dear Chairperson Alvarado-Gil:

Please vote aye on SB 1406, a bill to protect residents of Residential Care Facilities for the Elderly (RCFEs) from enormous, abrupt, and unfair rate increases.  RCFE rate increases, some double or triple the old rates, continue to be a vexing problem for a very vulnerable population that often has few options for redress.

As the New York Times reported in its “Dying Broke” series, the fees in RCFEs are “crushingly high” and particularly burdensome to RCFE residents who have fixed incomes, depleting assets, and disabilities limiting their ability to find and move into other housing.  Aside from periodic rate increases, RCFE residents are also subject to add-on charges imposed at the whim of facility managers for new services the residents don’t want or need.  Facilities can raise their monthly rates by hundreds or thousands of dollars a month by charging separately for services that should already be covered or the facility claims the resident cannot refuse.

SB 1406 protects RCFE residents against devastating and unfair rate increases by:

  1. Clarifying residents’ right to request, refuse, or discontinue a service;
  2. Giving residents 90 days instead of 60 days advance notice of rate increases along with a detailed justification of those increases; and
  3. Establishing a rate increase cap.

By clarifying and expanding rate increase protections for assisted living residents, SB 1406 provides housing stability for a highly vulnerable population of Californians with limited housing options and stops excessive rate increases in RCFEs.

I respectfully ask that you vote “aye” on SB 1406.


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