New Forum: Florida Legislation on CCRC Resident Protections – A Critical Discussion
Welcome to this dedicated forum for discussing the pending legislation in Florida that could significantly impact residents of Continuing Care Retirement Communities (CCRCs). This legislation, proposed by the Florida Office of Insurance Regulation, aims to strengthen financial protections for residents, particularly in cases of provider bankruptcy.
What’s at Stake?
Currently, residents of CCRCs are considered unsecured creditors in the event of a financial failure, meaning they stand in line behind lenders, vendors, and other financial interests when assets are distributed. The proposed legislation seeks to elevate the priority of resident claims, offering stronger protections for those who have entrusted their savings and future well-being to their communities.
Why This Matters
This reform is not just about financial security—it’s about building trust between providers and residents. When residents know they have a higher level of protection, confidence in the CCRC model strengthens. At the same time, responsible providers benefit from a more level competitive playing field, where transparency and financial accountability become the standard rather than the exception.
A National Model?
Florida is leading the way with this proposal, but the need for resident protections extends beyond one state. As we discuss these developments, we can explore how similar reforms might be pursued elsewhere and how we, as residents and advocates, can engage with policymakers to shape the future of CCRCs.
Join the Discussion
- What questions or concerns do you have about this legislation?
- How do you see this affecting residents and providers?
- What steps can be taken to support or improve these proposed changes?
Let’s use this space to stay informed, exchange ideas, and take action to ensure that CCRC residents receive the protections they deserve.
Richmond Shreve
NaCCRA Board Member
Forum Moderator
------------------------ Quoted from the FLiCRA Newsletter of Jan 29, 2025-----------------------
Office of Insurance Regulation Releases an Agency Bill
that includes Significant Proposed Changes to Florida Statute 651
The Florida Office of Insurance Regulation has released draft legislation for the 2025 regular legislative session.
The agency bill, which is one hundred and fifty pages, covers proposed changes to the insurance code, and it includes proposed reforms to address the insurance and reinsurance market.
The second piece of the agency bill includes proposed reforms to Florida Statute 651, the continuing care law. Section 47-Section 77 of the proposed bill relates to continuing care contracts and compliance by providers of continuing care.
The proposed bill is in bill drafting and a House and Sente Bill number have not been released as of January 29, 2025.
The FLiCRA state board of directors will be meeting the week of February 3rd to review the bill in its entirety to determine positions on the bill and/or specific sections of the bill.
The proposed changes to F.S. 651 include but are not limited to: operation and financial transparency of management companies that manage day-to-day operations of continuing care retirement communities in Florida; raising the level of “preferred claims for residents during bankruptcies”; changes in Minimum Liquid Reserve requirements; further defines “governing body of the provider”; changes to the Designated Residents Representative role in terms of notice requirements; creating a lien against the facility’s properties on behalf of all residents and contract holders who enter into life care contracts to secure performance of the provider’s obligations to residents and contract holders.
FLiCRA will release updated information as news develops and is available on this proposed legislation.
The regular legislative session starts on the 1st Tuesday of March and adjourns the 1st Friday in May.
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