| 11 | 11 | | |
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| 12 | 12 | | AN ACT CONCERNING THE ENFORCEMENT OF SURETY CONTRACTS BY NURSING HOMES. |
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| 13 | 13 | | |
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| 14 | 14 | | Be it enacted by the Senate and House of Representatives in General Assembly convened: |
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| 15 | 15 | | |
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| 16 | 16 | | Section 1. Section 19a-539 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2011): |
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| 17 | 17 | | |
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| 18 | 18 | | (a) Each nursing home facility shall disclose in writing to all prospective patients a complete and accurate list of all additional costs which may be incurred by them and such nursing home facility shall display or cause to be displayed copies of such list in conspicuous places therein. |
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| 19 | 19 | | |
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| 20 | 20 | | (b) Nursing home facilities, as defined in section 19a-521, shall be prohibited from enforcing a [surety] contract [on behalf of an applicant required as a condition of admission] with a third-party guarantor or an admissions agreement entered into with a responsible party who has access to an applicant or resident's assets or financial information unless: (1) The guarantor under such contract or [his] the guarantor's spouse, [or his children] child or [his grandchildren] grandchild has received an assignment or transfer or other disposition of property for less than fair market value, pursuant to section 17b-261, from the applicant; or (2) the applicant fails to return a properly completed application for Title XIX benefits to the Department of Social Services in accordance with its regulations; and (3) such contract contains a [clause which states the] notice advising the applicant, third-party guarantor or responsible party that: (A) The contract is enforceable against the guarantor, [or his] the guarantor's spouse, [or his children] child or [his grandchildren] grandchild if such guarantor or [his] the guarantor's spouse, [or his children] child or [his grandchildren have] grandchild has received an assignment or transfer or other disposition of property for less than fair market value, pursuant to section 17b-261, from the applicant or if said applicant fails to return a properly completed application for Title XIX benefits to the Department of Social Services in accordance with its regulations; (B) state and federal law prohibit a nursing home facility from requiring a third party to personally guarantee payment as a condition of admission or continued stay in the facility; and (C) due to the complexity involved in preparing an application for Title XIX benefits, it may be advisable for the person completing such application to seek professional assistance or legal advice. Such notice shall be written in not less than ten-point, boldface type, shall be stated in plain and simple language and, whenever possible and in accordance with any applicable federal guidelines, shall be in the primary language of the recipient. |
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| 21 | 21 | | |
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| 22 | 22 | | (c) A nursing home facility may prepare and submit an application for Title XIX benefits to the Department of Social Services on behalf of a person residing in or seeking admission to the nursing home facility, provided such person or such person's authorized representative authorizes the nursing home facility, in writing, to prepare and submit such application on such person's behalf. |
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| 23 | 23 | | |
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| 24 | 24 | | [(c)] (d) Nothing in this section shall be interpreted as prohibiting the acceptance of a voluntary surety contract. |
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| 25 | 25 | | |
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| 26 | 26 | | |
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| 27 | 27 | | |
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| 28 | 28 | | |
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| 29 | 29 | | This act shall take effect as follows and shall amend the following sections: |
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| 30 | 30 | | Section 1 October 1, 2011 19a-539 |
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| 31 | 31 | | |
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| 32 | 32 | | This act shall take effect as follows and shall amend the following sections: |
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| 33 | 33 | | |
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| 34 | 34 | | Section 1 |
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| 35 | 35 | | |
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| 36 | 36 | | October 1, 2011 |
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| 37 | 37 | | |
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| 38 | 38 | | 19a-539 |
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| 39 | 39 | | |
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| 40 | 40 | | |
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| 41 | 41 | | |
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| 42 | 42 | | HS Joint Favorable Subst. |
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