Continuing Care Contracts May Be Costly

California Bill Would Expand Rights of Residents of Continuing Care Retirement Communities

SACRAMENTO, CA — July 22, 2005 — A California bill, S. B. 244, would strengthen the rights of seniors in the state’s Continuing Care Retirement Communities (CCRCs), which are facilities that provide long–term care contracts. CCRCs offer independent senior housing and eventually residential care/assisted living and nursing home care, as the elderly resident’s health needs increase. The contract usually covers a person’s lifetime. There are 78 CCRCs in California, serving about 20,000 residents. Residents typically pay a steep entrance fee as well as monthly fees to the CCRC.

First introduced by Sen. Gloria Romero (D–East Los Angeles), S.B. 244 would allow CCRC residents to file complaints with the Department of Social Services. The CCRC would be required to inform residents of this right. S.B. 244 also ensures that CCRC residents may manage their own financial affairs. They would be protected against solicitation of contributions and gifts by the CCRC, which would not be allowed to make purchases of financial products a condition of continued residency.

Under S.B. 244, a prospective resident would have the right to inspect assisted living and skilled nursing home licensing reports before signing a continuing care contract. Continuing care contracts would include statements of billing practices, procedures, and guidelines, and require a minimum of 14 days between the billing date and the payment due date.

A CCRC resident would be entitled to notice about his or her transfer out of independent housing and into an assisted living facility or skilled nursing home. The resident could be transferred only if:

• The resident, a family member, or the family doctor are involved in the process that leads to a transfer decision;
• The resident receives 30 days written notice of the transfer, unless there are urgent medical needs;
• The notice includes the reason for transfer, date of transfer, new level of care, and the resident’s right of review by the Department of Social Services; and
• Enough time is allowed for the resident to prepare for the transfer.

The resident would be allowed to have the transfer decision reviewed at a facility care conference at which the local ombudsman may be present. If there is a further dispute, the resident could seek a review by the Department of Social Services. S.B. 244 would supercede current law that allows a resident to be transferred based on the decision of CCRC management or because a resident is considered disruptive.

Consumer Groups Support S.B. 244

S.B. 244 is sponsored by California Advocates for Nursing Home Reform. The group points out that residents rely on the financial solvency and good faith of CCRC providers for quality care and services over a lifetime. This puts these residents in a very vulnerable position. S. B. 244 is needed, the group concludes, in order to protect the rights of residents.

Various other senior advocacy and consumer groups support S.B. 244. The list includes: AARP, Alzheimer’s Association—California Council, Association of California Caregiver Resource Centers, Bet Tzedek Legal Services, California Alliance of Retired Americans, California Church IMPACT, California LTC Ombudsman Association, California Senior Legislature, Congress of California Seniors, Older Women’s League, and the National Association of Social Worker—CA Chapter.

Help S.B. 244 Become Law

S.B. 244 has passed the Senate, and is now being considered by the Assembly Committee on Appropriations. You can find the full text of the bill on the California State Senate web site. (Scroll to “House”, and choose Senate. Scroll to “Bill Number,” type in “ 244”, and click on “Submit.”

Brayton Purcell supports S.B. 244 and other legislation that helps seniors in care facilities. Our firm represents victims of elder abuse, nursing home abuse, and neglect. We also handle complaints involving inadequate pain management. If you have a question about the legal rights of an elderly loved one, please feel free to contact us.

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• There are 78 Continuing Care Retirement Communities in California, serving about 20,000 resident seniors.

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