Continuing care contracts.
By removing the existing requirement to reduce fee structures when the fund exceeds $500,000, AB 1379 enables greater flexibility in managing the fund. The bill mandates that ongoing financial plans and quarterly reports be submitted by care providers when they face financial distress or lower occupancy levels. This provision aims to provide better transparency and accountability, ultimately ensuring that residents receive the level of care promised under their contracts.
Assembly Bill 1379, introduced by Assembly Member Quirk, seeks to amend sections of the Health and Safety Code that regulate continuing care contracts, which are essential for senior living arrangements. The bill proposes renaming the Continuing Care Provider Fee Fund to the CCRC Oversight Fund, allowing for adjusted fees on continuing care providers to ensure the fund can cover the regulatory costs associated with overseeing the continuing care program. This amendment is aimed at maintaining an adequate fund balance while promoting better financial oversight of care providers.
The sentiment around AB 1379 is generally positive among those advocating for enhanced regulatory oversight in the continuing care sector. Supporters believe that this bill will strengthen protections for elderly residents by ensuring that providers maintain financial health and can meet their contractual obligations. However, there may be concern among providers about the administrative burden posed by the new financial reporting requirements.
Notably, the bill's focus on increased regulation and oversight may lead to contention between supporters who advocate for greater financial transparency and providers who may argue that such measures could lead to increased operational challenges. The ability for the department to enforce stricter reporting could lead to friction as care providers adapt to these heightened standards, potentially impacting operational freedoms.