The Los Angeles County Board of Supervisors on Tuesday will consider a motion introduced by Supervisors Kathryn Barger and Lyndsey Horvath to implement a plan to help avert a foster family agencies insurance crisis as many nonprofit agencies across the state and in Los Angeles County will lose their insurance coverage.
In August, the Nonprofits Insurance Alliance of California, which serves approximately 90% of the foster family agencies in the state, announced it would send out notices of nonrenewal of all coverages for foster family agencies in the state due to changes made to Assembly Bill 2496, The Foster Family Agency Protection Act. The original version of the bill did not absolve foster family agencies of their own negligence. Rather, it meant to protect children by making sure that responsible parties were held accountable, according to a summary on the Nonprofits Insurance Alliance website. However, the revised version of the bill that was signed into law on Sept. 22 did not have those safeguards.
According to Barger and Horvath’s motion, since Oct. 1, of the 26 foster family agencies that contract with the Los Angeles County Department of Children and Family Services that are insured by the alliance, one has ceased operations, two are unable to procure coverage due to denials or expense, and 14 have policies expiring this year.
“Many of these FFAs also have contracts with the Department of Mental Health to provide mental health services to the foster youth,” the motion said.
The motion, if approved, would direct the Department of Children and Family Services, in collaboration with the county CEO and in consultation with county counsel, to report back in writing in 30 days on available one-time budget resources, including the potential for available philanthropic funds, to provide temporary support for contracted foster family agencies impacted by the premium rate increases. The report should include a proposed plan with an application process for the agencies to be considered for the subsidy that at a minimum sets forth the agencies’ efforts to obtain insurance, a detailed statement on the financial impact of the insurance premium to the agencies, details regarding the agencies loss history, and efforts made by the agencies to secure similar subsidies and/or patch rates from other counties with which the agency contracts.
The motion would also instruct the county CEO to review other local county jurisdictions sexual misconduct insurance requirements and determine how to adjust and align the county’s contract insurance coverage requirements to mirror other jurisdictions. It would also direct the CEO to hire an insurance broker to provide a risk financing feasibility study, which will provide an independent assessment that examines multiple aspects of securing and maintaining insurance for foster family agencies/foster care homes, including technical, economic, financial, and legal considerations
“This will help to identify feasible solutions for the County,” the motion said. “This risk financing study could identify potential participants other than the County for a pooling agreement, determine potential costs of alternative programs, and explore potential solutions to finance the County’s sexual misconduct exposures.”
In addition, the motion would request the CEO, through the Legislative Affairs and Intergovernmental Relations Branch to advocate at the state level to adjust the rate reform plans at the California Department of Social Services to include amendments reflecting the foster family agency insurance premium increases, and create a state insurer of last resort for some or all of the required types of liability insurance, possibly through expansion or replication of the Foster Family Home and Small Family Home Insurance Fund, offered through the California Department of Social Services.
The public may attend the board meeting and comment in person. The meeting starts at 9:30 a.m. Tuesday at the Hall of Administration, 500 West Temple St., Los Angeles.
They can also listen and make comments by telephone.
To listen only, call 877 873-8017. The access code is 111111 for English and 22222 for Spanish translation.
To make comments, call 877-226-8163 starting at 9 a.m. Once prompted, enter the participant code (1336503), then press #. An operator will take your name and the item number you wish to address, then place you in a listening queue. When the board begins discussing Agenda Item 6, press 1, then 0.
