As Foster Agencies Face Insurance Crisis, County Officials Step Up to Find Solutions

Los Angeles County officials are scrambling to address an insurance crisis threatening foster care agencies, with some at risk of closing within weeks.

The Nonprofits Insurance Alliance of California, which insures 90% of all Foster Family Agencies in California, has issued non-renewal notices to 30 of the 46 Foster Family Agencies headquartered in Los Angeles County.

1,700 children are being cared for by Foster Family Agency (FFA) resource families in Los Angeles County

Time is running out: Fourteen agencies caring for approximately 500 children could lose coverage in 21 to 30 days.

“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.”

The Los Angeles County Board of Supervisors voted unanimously Tuesday to support a motion seeking urgent solutions. The measure, introduced by Barger and co-authored by Board Chair Lindsey P. Horvath, directs the County’s legal team to collaborate with the Chief Executive Office and Department of Children and Family Services. They have 15 days to report potential solutions to the Board.

“Los Angeles County’s child welfare system relies on Foster Family Agencies as essential partners,” Horvath said. “We count on Foster Family Agencies 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.”

The motion also instructs County lobbyists to advocate for state budget proposals addressing the long-term insurance crisis facing Foster Family Agencies.

Foster agency representatives testified about the crisis’s impact during the Board meeting. Cesar A. Gomez, LCSW, Division Director of Permanency Program Services for Five Acres, an agency with a 36-year history, urged continued advocacy, saying, “The future of our most vulnerable children in Los Angeles County is on the line.”

County officials emphasized the need to safeguard uninterrupted care for foster children, with Barger saying, “Our County must do whatever is possible to safeguard the uninterrupted care of children placed in foster homes. Their stability is key.”