HB1363 (2010) Detail

Relative to continuing care communities.


CHAPTER 144

HB 1363 – FINAL VERSION

17Feb2010… 0463h

13May2010… 2008eba

2010 SESSION

10-2400

01/10

HOUSE BILL 1363

AN ACT relative to continuing care communities.

SPONSORS: Rep. Hammond, Hills 3

COMMITTEE: Health, Human Services and Elderly Affairs

ANALYSIS

This bill clarifies the law regulating continuing care communities when a person has not yet moved into the facility, but is receiving continuing care services at home.

This bill is a request of the insurance department.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

17Feb2010… 0463h

13May2010… 2008eba

10-2400

01/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Ten

AN ACT relative to continuing care communities.

Be it Enacted by the Senate and House of Representatives in General Court convened:

144:1 Continuing Care Communities; Definitions. Amend RSA 420-D:1, III to read as follows:

III. “Continuing care” or “life care” means furnishing or promising to furnish to a person, other than one who is related by consanguinity or affinity up to, but not including, the third degree, services that shall include board or lodging, or both, and may include nursing services, medical services, or other health related services, irrespective of whether the board, lodging, and services are provided at the same location or provided by a third party, pursuant to a contractual agreement extending for the life of such person or for a period of a year or more in consideration of payment of an entrance fee which may also include additional periodic charges for the services provided and including contracts which are terminable by either party. Continuing care or life care includes contracts with residents meeting the requirements in this paragraph, where the resident contracts to receive board or lodging or both in the future and does not move immediately into the facility.

144:2 Continuing Care Communities; Definitions. Amend RSA 420-D:1, V and VI to read as follows:

V. “Entrance fee,” “entrance deposit,” or “accommodation fee” means an initial or deferred payment, agreed upon in the contract, of a sum, usually a lump sum, in cash or in kind, to a provider in return for acceptance as a resident [in a facility]. This definition shall not apply to the payment of a sum which is less than the total of periodic payments, as defined in paragraph X of this section, for one year or $10,000.

VI. “Facility” means any facility or institution [offering continuing care to an individual] providing board, lodging, or other services under a contract for continuing care.

144:3 Continuing Care Communities; Definitions. Amend RSA 420-D:1, VIII to read as follows:

VIII. “Living unit” means a room, apartment, or other area within a facility used exclusively by one or more, but usually no more than 2[,] residents living independently and does not include a nursing home unit, skilled nursing facility, hospital room, assisted living unit, or any other similar units or facility licensed under RSA 151. [This definition of living unit shall not mean shelter care, a personal care unit, nursing home, or infirmary bed.]

144:4 Continuing Care Communities; Definitions. Amend RSA 420-D:1, X to read as follows:

X. “Periodic payments” or “monthly care fees” means those payments in addition to the entrance fee [and] made by a resident to a provider for continuing care during the entire period [of residence in a facility] that the contractual agreement for continuing care is in effect.

144:5 Continuing Care Communities; Definitions. Amend RSA 420-D:1, XIV(a) to read as follows:

XIV.(a) “Unearned portion of entrance fee” means that portion of the entrance fee which a provider contracts to return to a resident should the resident [decide to leave a facility] cancel the contract for continuing care. This may be nothing, or the contract may call for the provider to “earn” a specific percentage of the entrance fee per month.

144:6 New Section; Continuing Care at Home Contracts. Amend RSA 420-D by inserting after section 3 the following new section:

420-D:3-a Continuing Care at Home Contracts.

I. A provider may contract to provide continuing care to a resident who remains at home and does not move immediately into a facility if the provider:

(a) Holds a certificate of authority issued under this chapter to provide continuing care.

(b) Owns and operates a facility located in New Hampshire where the resident has the right to receive board, lodging, or both, and other services.

(c) Satisfies the commissioner that the proposal to offer continuing care contracts to residents who do not move immediately into the facility will not place the provider in an unsound financial condition and will not be injurious or hazardous to any resident contracting with the provider for continuing care.

(d) Otherwise complies with all requirements of this section and RSA 420-D.

II. Any provider that issues contracts under this section shall:

(a) Be in good standing with the commissioner, not subject to action pursuant to RSA 420-D:5.

(b) Be responsible for all services the provider or any third party provides to the resident in the resident’s home pursuant to the contract, and shall exercise direct control and oversight over any individual or entity providing those services.

(c) Have procedures to ensure that any third party providing services to the resident in the resident’s home pursuant to the contract is trustworthy and certified, licensed, or otherwise qualified under state law to provide those services.

III. The provider and any person employed by the provider that assists in delivery of services to the resident in the resident’s home shall have a business location within the state of New Hampshire, hold appropriate licenses and shall be available to address complaints, questions, and concerns of residents.

144:7 Continuing Care Communities; Revocation or Suspension of Certificate of Authority. Amend RSA 420-D:5, I(j) to read as follows:

(j) Such unsound financial condition or any other practice which may be hazardous or injurious to [the] residents [of the facility] or to the general public.

144:8 Continuing Care Communities; Annual Reports. Amend RSA 420-D:7, II(c) to read as follows:

(c) An estimated financial statement for the new fiscal year with an estimate in case of all major changes expected during the year. The commissioner shall adopt rules under RSA 541-A relative to the definition of major changes. Reports containing the information under this subparagraph shall not be distributed to residents [of a facility] unless prior approval has been obtained from the commissioner.

144:9 Continuing Care Communities; Lien on Behalf of Residents. Amend RSA 420-D:9 to read as follows:

420-D:9 Lien on Behalf of Residents. The commissioner shall file a lien on all real and personal property of a provider if he deems it necessary to protect the interests of the residents [of a facility]. Such lien shall be effective for the period determined necessary by the commissioner and may be renewed if the circumstances warrant it. A lien shall only be foreclosed to protect the investment of residents, and the proceeds shall be distributed in a manner to satisfy any continuing care contracts in effect at that time.

144:10 Continuing Care Communities; Entrance Fee Escrow Account. Amend RSA 420-D:10, I to read as follows:

I. An escrow account for entrance fees shall be established and approved by the commissioner before a certificate of authority under this chapter shall be issued. Entrance fees paid by prospective residents before occupancy of a facility living unit or by prospective residents under a contract issued pursuant to RSA 420-D:3-a, and which total over $1,000 shall be placed in this account. All entrance fees subject to this section shall be placed in the account on the first working day after receipt. Interest on such fees shall be paid at the current market rate as established by the commissioner to the prospective resident if the resident is not allowed by the provider, for any reason, to enter the facility, provided however if the entrance fee is paid pursuant to a contract under RSA 420-D:3-a, the entrance fee shall be returned to the consumer with interest, if the contract is not signed or the consumer exercises the right of rescission under RSA 420-D:12, I(m).

144:11 New Subparagraph; Continuing Care Communities; Entrance Fees. Amend RSA 420-D:10, III by inserting after subparagraph (b) the following new subparagraph:

(c) For a resident that has not moved into the facility pursuant to RSA 420-D:3-a, 10 days after the contract is fully executed by all parties.

144:12 Continuing Care Communities; Contracts With Residents. Amend RSA 420-D:12, I(d)-(g) to read as follows:

(d) State the conditions upon which the provider may evict a resident or terminate the contract for continuing care and the conditions upon which a resident may terminate his or her residency or terminate the contract for continuing care. A statement as to what portion of the entrance fee shall be returned under each condition shall also be included in accordance with RSA 420-D:12, II.

(e) Describe conditions required for a person to continue as a resident.

(f) Describe any conditions under which a person delinquent in his or her periodic payments may remain and if there is a specific time limit.

(g) State the entrance fees and periodic payment changes that may occur if a resident marries or if a spouse joins a resident in a living unit. It shall also state the fee changes that may occur if either one of the 2 people who occupy the same living unit dies or otherwise leaves that living unit.

144:2 Effective Date. This act shall take effect January 1, 2011.

Approved: June 14, 2010

Effective Date: January 1, 2011