A New Hampshire law affecting assisted living community billing practices following a resident’s death could mean fee increases for all residents, according to one expert.
Gov. Chris Sununu (R) on Friday signed Senate Bill 281, which prohibits assisted living communities and nursing homes from enforcing a 30-day notice of vacancy policy. Under that policy, facilities continue to bill for rent and fees up to 30 days after a resident dies to cover costs of renovations prior to re-occupancy by a new resident.
The law now ends that billing cycle at 10 days. If personal property impedes reuse of a room, then that 10-day period begins after the estate or responsible party removes those items. Connecticut has a similar law on the books, capping the billing cycle at 15 days.
New Hampshire Health Care Association President and CEO Brendan Wlliams called the new law “interesting precedent” and suggested that it would affect assisted living communities more so than nursing homes due to the time and money involved in renovating a person’s home.
“The short period does not take into account the labor crisis that can make refurbishing an assisted living resident’s room(s) challenging, as the setting is often highly personalized and not as simple as turning a nursing home room,” Williams told McKnight’s Senior Living. “It also presumes incapacity on the part of residents to knowingly enter into contracts for full-month tenancy — a presumption of incapacity that doesn’t exist in other areas where an older consumer’s rights may be at stake: Medicare Advantage contracts, life insurance viatical settlements, reverse mortgages, everyday leases, etc.”
Williams said that facilities will adjust their policies, perhaps at greater cost to all residents.
New Hampshire Association of Residential Care Homes Board President Eldon Munson told McKnight’s Senior Living that its legislative committee did not oppose the bill and considered it “worthwhile.” He added that although NHARCH, the state Argentum partner, has several larger provider members, most of its members fall within the 20- to 30-bed range and have not encountered any issues regarding clearing a room within 10 days.
State Sen. Bill Gannon (R-Sandown) sponsored the bill after receiving a $14,000 bill from his mother’s assisted living community after she died and he had removed her belongings. Gannon testified during a January hearing that he negotiated a lower bill with the community, but he knows of other families that have lost money due to the billing policy.
Gannon also testified that a 10-day process “seems fair, giving the facility time to paint the room and make small repairs if needed.” He said SB 281 will stop “unfair practices” of senior living communities and nursing homes.
“These end-of-life expenses have been hitting grieving New Hampshire families hard, taking thousands of dollars to pay for a nursing home room weeks after a loved one had died,” Gannon said in a Twitter post. “These vacant rooms are being filled almost immediately, so these facilities should not be charging two families at the same time.”
