The state’s foster family agency insurance crisis could soon crash the system
The start of a new year is a time of celebration, hope and joy for many families. But for as many as 9,000 California foster youth and the families who care for them, it’s a time of uncertainty and anxiety. That’s because youth who have already experienced life-altering traumas are at risk of being separated from the stable homes and loving families critical to their healing. They need immediate leadership from state officials to stop the total collapse of the system that supports foster families.
Foster Family Agencies (FFAs) are nonprofit agencies with a critical mission: to recruit potential foster parents, train them for the difficult work of supporting youth who’ve faced unthinkable challenges, and provide around-the-clock support to ensure successful placements of youth in family homes.
A seismic event over the summer shook an already fragile foster care system in our state: The agency providing insurance for 90% of the state’s FFAs abruptly notified the nonprofits that their insurance will not be renewed. They now face a difficult task of having to raise large sums of money to cover an enormous insurance rate hike or close their doors entirely. FFA programs in Los Angeles and the Central Valley have already shut down, including those run by Sycamores and Sierra Vista Child and Family Services. Dozens more, including several in the Bay Area, are at immediate risk.
In the short term, state leaders need to step up and work with FFAs, counties and insurers to provide a solution to this insurance crisis. We also urge the Legislature and governor to approve additional budget funding to help FFAs cover higher premiums. Longer term, FFAs and nonprofits providing a spectrum of foster care need to be funded at levels that allow them address workforce shortages, keep up with the increasing cost of living and provide the best care possible for the youth and families they serve.
Forcing FFAs to close will be devastating to the youth the state has promised to protect. Foster youth often bear significant mental health effects after trauma, abuse and separation from their biological families. Some find their way onto the streets, having been exploited by gangs or sex traffickers.
For youth who’ve experienced such insecurity, the stability of a safe, loving home and behavioral health support is essential, and California counts on FFAs to support foster families in caring for youth with the most intensive needs. That may look like responding to a late-night crisis, training families to provide specialized care or helping shuttle kids to specialists’ appointments.
But with an increasing number of FFAs on the brink of closing, youth may be transferred on short notice to different families. In the worst-case scenario, these youth — who are often older and have the hardest time being placed in family homes — could join the ranks of youth housed in unsuitable environments like offices or hotels, or even in the streets. That’s why county child welfare officials say losing FFAs would be devastating to the foster care system statewide.
This is not the first time FFAs have had to fight for their survival. Despite their essential role in achieving the Legislature and Gov. Gavin Newsom’s goal to ensure even the most challenged youth are placed in family homes rather than group settings, the state has not supported FFAs in keeping up with operating and workforce costs.
They are struggling to provide quality programs while also dealing with massive staff turnover and burnout. Many of these community-based nonprofits were on the ropes before the insurance crisis set in and tipped things over the edge. There is no plan in place to make up for this lack of resources.
It’s uncertain how many FFAs can hold on in such tough financial circumstances.
It’s time for state leaders to take action to ensure quality care for our most vulnerable children. As one of the world’s highest-performing economies, it’s shameful the state would turn its back on children for whom it has taken legal responsibility.
