“Medicare and Medicaid-participating nursing homes are not allowed to compel a resident’s relatives or associates to bear the burden of care expenses as a prerequisite for admission, or for the individual to remain in the facility,” expressed Rohit Chopra, the CFPB Director, in a public statement.
Legislation currently in effect ensures that relatives and associates who enter into admission contracts with nursing care facilities are not accountable for settling unpaid charges linked to the resident’s tenure.
The Consumer Financial Protection Bureau (CFPB) notes that there have been instances where families were taken to court by nursing home collection agencies, wages were seized, properties were lost, and some individuals were pushed toward insolvency (Sept. 8).
The Nursing Home Reform Act explicitly forbids nursing facilities from demanding that an external party, such as a caregiver, shoulder the financial burden for a resident’s expenses.
It has been identified that certain establishments stipulate in their contracts that caregivers must pay for the costs associated with the resident’s care. Based on the released report, caregivers can find themselves financially accountable should they accrue liabilities during their tenure of looking after the resident.
Individuals impacted by these debt collection disputes may file their grievances by navigating to the Consumer Financial Protection Bureau’s website.
