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      RS 51:2178     


§2178.  Continuing care agreements; requirements and right to rescind

A.  All continuing care agreements entered into or extended after the effective date of this Chapter shall:

(1)  Provide for the continuing care of only one resident, or for two persons occupying space designed for double occupancy, under appropriate regulations established by the provider and shall list all properties transferred and their market value at the time of transfer, including donations, subscriptions, fees, and any other amounts paid or payable by, or on behalf of, the resident or residents.

(2)  Specify all services that shall be provided by the provider to each resident, including, in detail, all items which each resident shall receive, if the items will be provided for a designated time period or for life, and if the services will be available on the premises or at another specified location.  The provider shall indicate which services or items are included in the agreement for continuing care and which services or items are made available at or by the facility at extra charge.  The items shall include, but are not limited to, food, shelter, personal services, nursing care, medical care, burial, and incidentals.

(3)  Describe the terms and conditions under which an agreement for continuing care may be cancelled by the provider or by a resident and the conditions, if any, under which all or any portion of the entrance fee shall be refunded in the event of cancellation of the agreement by the provider or by the resident, including the effect of any change in the health or financial condition of a person between the date of entering into an agreement for continuing care and the date of initial occupancy of a living unit by that person.

(4)  Describe the health and financial conditions required for a person to be accepted as a resident and to continue as a resident, once accepted, including the effect of any change in the health or financial condition of a person between the date of entering into a continuing care agreement and the date of taking occupancy in a living unit.

(5)  Describe the circumstances under which the resident shall be permitted to remain in the facility in the event of financial difficulties of the resident.  The stated policy may not be less than the terms stated in R.S. 51:2179.

(6)  State the fees that shall be charged if the resident marries while at the designated facility, the terms concerning the entry of a spouse to the facility, and the consequences if the spouse does not meet the requirements for entry.

(7)  Provide that the agreement may be cancelled by giving notice of cancellation of at least thirty days by the provider, the resident, or the person who provided the transfer of all property or funds required for the care of the resident.  However, if an agreement is cancelled because there has been a good faith determination that a resident is a danger to himself or others, only such notice as is reasonable under the circumstances shall be required.  The agreement shall further provide in clear and understandable language, and in boldfaced type, the terms governing the refund of any portion of the entrance fee, which terms shall include a provision that all refunds be made within ninety days of notification.  Any such refund shall be calculated on a pro rata basis with the facility retaining no more than two percent per month of occupancy by the resident and no more than a ten percent fee for processing.  When the contract provides for the facility to retain no more than one percent per month of occupancy by the resident, it may provide that the refund shall be payable upon receipt by the provider of the next entrance fee for any comparable unit upon which there is no prior claim by any resident.  However, any prospective resident who cancels the agreement prior to occupancy of the unit shall receive a refund of the entire amount of the entrance fee paid, less payment for specific services rendered and a processing fee not to exceed two percent of the amount paid.  The refund shall be paid no later than sixty days after the giving of notice of intention to cancel.

(8)  State the terms under which an agreement is cancelled by the death of the resident.  These terms may contain a provision that, upon the death of a resident, the entrance fee of the resident shall be considered earned and shall become the property of the provider.  When the unit is shared, the conditions with respect to the effect of the death or removal of one of the residents shall be included in the agreement.

(9)  Describe the policies which may lead to changes in monthly recurring and nonrecurring charges or fees for goods and services received.  The agreement shall provide for advance notice to the resident, of not less than thirty days, before any change in fees or charges or the scope of care or services may be effective, except for changes required by state or federal assistance programs.

(10)  Provide that monthly charges for all future care cannot be paid in one lump sum except that more than one month maintenance fee may be paid at one time but not more than three months.

(11)  Specify if the facility is, or is affiliated with, a religious, nonprofit, or proprietary organization or management entity, the extent to which the affiliate organizations shall be responsible for the financial and contractual obligations of the provider, and the provisions of the federal Internal Revenue Code, if any, under which the provider or affiliate is exempt from the payment of federal income tax.

(12)  Describe the policy of the provider regarding reserve funding.

B.  A resident has the right to rescind a continuing care agreement without penalty or forfeiture within thirty days after executing the agreement.  During the thirty day period, the resident's funds shall be retained in a separate escrow account under terms approved by the department.  A resident may move into the facility designated in the agreement before the expiration of the thirty day period.

C.  The agreement shall include or shall be accompanied by a statement, printed in boldfaced type, which reads: "This facility and all other continuing care facilities in the state of Louisiana are regulated by R.S. 51:2171 et seq.  A copy of the law is on file in this facility."

D.  Before the transfer of any money or other property to a provider by or on behalf of a prospective resident, the provider shall present a typewritten or printed copy of the agreement to the prospective resident and all other parties to the agreement.  The provider shall secure a signed, dated statement from each party to the contract certifying that a copy of the agreement was received.

E.  If a resident dies before occupying the facility or, through illness, injury, or incapacity, is precluded from becoming a resident under the terms of the continuing care agreement, the agreement is automatically cancelled, and the resident or his legal representative shall receive a full refund of all moneys paid to the facility, except those costs specifically incurred by the facility at the request of the resident and set forth in writing in a separate addendum signed by both parties to the agreement.

F.  No act, agreement, or statement of any resident, or of an individual purchasing care for a resident, under any agreement to furnish care to the resident shall constitute a valid waiver of any provision of this Chapter intended for the benefit or protection of the resident or of the individual purchasing care for the resident.

Acts 1987, No. 483, §1.

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