An omnibus insurance bill in Florida is coming under fire from the senior living industry in the state over provisions that would affect continuing care retirement / life plan communities. It’s one of many bills that state legislators around the country are considering that potentially affect providers.
SB 1656, from the Florida Office of Insurance Regulation, proposes amendments to a Florida statute governing CCRCs, particularly provisions intended to give the Office of Insurance Regulation new tools to deal with CCRC bankruptcies.
The bill is supported by Florida Life Care Residents Association, which is composed of residents of senior living communities across the state. According to a FLiCRA newsletter, almost 45% of Florida’s CCRC residents are members. The association said it supports “specific concepts” included in the legislation that “protect resident rights and financial interests.”
Specifically, FLiCRA supports aspects of the bill that include defining the role of management companies that control the day-to-day operations of Florida’s CCRCs, placing residents in a higher priority for claims during state-administered receivership or liquidation proceedings, requiring additional financial transparency for CCRCs that have filed for bankruptcy, and creating a definition of “governing body” that mirrors the market to ensure enforcement of existing law and provide clarity for residents councils.
But senior living industry advocates in the state said they have concerns over the bill and are pushing for a collaborative approach to achieving goals that would satisfy residents, the industry and the state’s insurance office.
LeadingAge Southeast said it appreciates the OIR’s desire to enhance resident protections and that the organization is committed to collaborating with FLiCRA to develop “thoughtful, targeted legislation that provides protections for residents while ensuring healthy, successful Florida CCRCs.”
“Although a few of our concerns were addressed in a strike-all amendment that was presented to the Senate Banking and Insurance Committee this week, we still have deep concerns that the legislation, in its current form, will have the unintended consequence of undermining the stability of CCRCs and harm the residents it aims to protect,” LeadingAge Southeast Senior Director of Operations Nick Van Der Linden told McKnight’s Senior Living.
Westminster Communities of Florida CEO Hank Keith said that several sections of the bill are concerning, including a provision that would prioritize residents, moving them into the first position in cases of liquidation or bankruptcy.
Although he said he understands the concept, Keith said that lenders would not be inclined to move into the second position, after residents, which could jeopardize future capital improvements and borrowing for communities. If communities can’t borrow to fund capital improvements, then they will need to assess residents to cover the cost, which could hurt residents and the industry in the future, he said.
Keith also questioned language in the bill about regulating management companies and minimum liquid reserve requirements.
The Florida Senior Living Association said that the bill either could shift increased costs to residents or lead to the degradation of the industry altogether.
“With the arrival of the ‘silver tsunami,’ it is critical we do not unintentionally impede companies and investors from continuing to provide high-quality CCRCs, or from improving operations for CCRCs that might be troubled,” FLSA Chief Operating Officer and General Counsel Jason Hand told McKnight’s Senior Living. “FSLA is concerned the bill, in its current form, may cause CCRCs and related management companies to reconsider investing in Florida.”
Keith said he joined LeadingAge Southeast during its recent Legislative Days in meeting with lawmakers to bring their attention to the bill and its potential impacts on CCRC operators and residents. And he asked residents from Westminster’s Florida communities for help in writing letters to lawmakers sharing their concerns about how the bill could increase costs.
“At the end of the day, we want to get back to a collaborative effort to make sure residents, the industry and the OIR are protected at the same time,” Keith said.
Other states, other bills
Meanwhile, state legislators elsewhere are considering a wide array of bills addressing worker protections, unlicensed assisted living homes, senior living referral companies, sustainable long-term care and healthcare priorities.
- In Kentucky, HB 398 would bring the state’s occupational safety and health standards in line with regulations established by the federal government, providing standardized requirements for operators across state lines, according to the Kentucky Association of Health Care Facilities, Kentucky Center for Assisted Living and Kentucky Senior Living Association.
- Meanwhile, in Texas, HB 2510 would make operating an unlicensed assisted living home a criminal offense. Violators could face up to a year in jail for a first conviction, and repeat offenders could face up to 10 years.
- Texas legislators also are considering SB 1137, which would prohibit senior living consultants from being paid for referrals directing residents to unlicensed group homes, except under certain conditions.
- And in Pennsylvania, a legislator is planning to introduce a bill meant to address the sustainability of long-term care in the state. The bill would set predictable funding using a formula to set the minimum reimbursement rate so that assisted living communities, personal care homes and nursing homes can make budgets, including for staffing levels.
- And in Delaware, a collaborative of healthcare organizations recently introduced a joint advocacy agenda aimed at strengthening healthcare in the state. The Delaware Health Care Facilities Association joined with the Delaware Healthcare Association, the Delaware Nurses Association, the Medical Society of Delaware and the Delaware Association for Home and Community Care to announce a plan to address several of their healthcare priorities, including health workforce development, reimbursement rates, workplace violence and affordable housing.
Source: McKnights Seniorliving
Be First to Comment