The insurance coverage crisis that is sweeping across various sectors in California has found a new target: Foster Family Agencies.
Last month, the Nonprofits Insurance Alliance of California (NIAC), the insurance entity that covers 90 percent of all Foster Family Agencies (FFAs) in California, issued non-renewal notices to 30 FFAs of the 46 that are headquartered in Los Angeles County. Fourteen of those agencies–who provide foster care for approximately 500 children–will lose insurance in the next 21 to 30 days and may be forced to close their doors.
“There’s no doubt in my mind that our foster care agencies are facing a disastrous legal and fiscal cliff,” said Supervisor Kathryn Barger. “Reputable foster care agencies that have operated for decades are scrambling to find another insurance provider at no fault of their own. They’re encountering rates that are up to five times more than what they’ve been paying, which is completely unfair. Our County must do whatever is possible to safeguard the uninterrupted care of children placed in foster homes. Their stability is key.”
As a result, today the Los Angeles County Board of Supervisors voted unanimously to support a motion introduced by Supervisor Barger and co-authored by Chair Lindsey P. Horvath to urgently find some short and long-term solutions.
“Los Angeles County’s child welfare system relies on Foster Family Agencies as essential partners,” said Chair Horvath. “We count on FFAs to recruit and support individuals and families who open their hearts and homes to children entrusted to our care. It is imperative that we do everything within our power to protect them from exorbitant insurance rates so they can continue to do their incredibly important work. FFAs stand by our kids and Los Angeles County intends to stand by them.”
Los Angeles County’s legal team now has 15 days to collaborate with the Chief Executive Office and the Department of Children and Family Services to report insurance crisis solutions to the Board of Supervisors. The motion also instructs the County’s team of lobbyists to advocate for state budget proposals that can provide a long term solution to the insurance crisis facing FFAs.
During the Board of Supervisors’ discussion on this item, multiple Foster Family Agency representatives testified to the impact of this looming insurance crisis on their operations. “Our agency has facilitated positive permanent outcomes for vulnerable children for 36 years,” said Cesar A. Gomez, LCSW, Division Director of Permanency Program Services for Five Acres. “Please continue your advocacy on behalf of Foster Family Agencies so that we can keep doing this important work. The future of our most vulnerable children in Los Angeles County is on the line.”