Elder Care Referral Businesses to Face Increased Regulatory Scrutiny
Washington will be the first state to clamp down on the explosive growth of elder care referral businesses according to a report from the Seattle Times.
The providers help guide families through a range of options for their loved ones that can include assisting living or other senior housing that best fits their needs for free. In return, these companies can be paid as much as $3,500 per person by the facilities for providing them with a client.
Legislation sent to Governor Chris Gregoire will require referral companies to follow strict standards that include written disclosures of their commission rates. Washington is the first state to pass a comprehensive law to rein in elder-care referral companies, according to research by AARP, a senior organization that supported the bill.
Across the nation, lawmakers are studying the bill as a model for change in at least a dozen states, consumer advocates and legislators said.
“The inherent problem is that referral agencies aim to make a profit at a most vulnerable time in an elder’s life,” said state Ombudsman Louise Ryan. “Right now, there are no rules.”
The bill requires companies to meet the following minimum standards:
- Obtaining a signed disclosure statement of fees and commissions.
- Maintaining at least $1 million in liability insurance coverage.
- Completing a standardized intake form that tracks a senior’s medical history and ability to pay for board and care.
- Follow the state Consumer Protection Act, which gives the state Attorney General’s Office authority to investigate complaints.
State gets tough on referrals for elder care
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Category: Assisted Living, Senior Care, Senior Housing
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It's about time these companies were exposed. I worked at an assisted living facility when A Place for Mom came into being. Families did not understand that A Place for Mom was getting a HUGE fee from the assisted living facility once they were placed. There was also a huge fee to even be on their list. That would be fine if these companies were honest with the families but they aren't. Families thought this was a free service performed by a company that only had their best interests at heart. Sad.
Very true – however, it is also the time in the seniors life, as well as the adult children's life when they need to know ALL the options. The Senior Site, unlike many others, does not profit from any care level charges, strictly the real estate component. We also share in the downside… meaning quite often referral advice, along with much more, is given, and the client decides to go it alone, with their new found knowledge!! Much like a realtor withouth a buyer agreement…. also, if there is government funding involved, then The Senior Site does not charge, nor accept payment. And lastly, we negotiate on behalf of the family – meaning if they cannot accept the suggested $3500, but can afford $2500 … we negotiate with the senior living community for $2500 – and take our commission from the $2500 fee, NOT FROM THE MARKET RATE of $3500.