Insurance department, providers back overhaul of continuing care retirement community rules

Lawmakers heard testimony on Senate Bill 124 FN, a comprehensive overhaul of New Hampshire’s regulatory framework for continuing care retirement communities (CCRCs).

The bill, introduced on behalf of Senator Ricciardi, would modernize a statute more than 30 years old and give the New Hampshire Insurance Department new tools to monitor financial health, the department said. “When you are talking about an entity who is in that degree of crisis, the options and the opportunities available to you to rectify that situation are greatly narrowed,” DJ Betancourt, commissioner of the Insurance Department, told the committee. The department said it had responded to three CCRCs facing major financial distress in the past decade, including one that had about 10 days of cash on hand.

Key proposed changes include quarterly financial reporting rather than annual filings, an early warning system that triggers review and a required financial solvency plan, escrow protections for substantial entrance fees, and a statutorily enumerated residents’ bill of rights. The draft also allows the department to give greater autonomy to high-performing CCRCs (for example, not requiring escrow when an operator meets occupancy and cash-on-hand benchmarks) while imposing additional oversight for facilities that fail benchmarks.

Steve Nottinger, an attorney in the Insurance Department, said the “most important thing” is quarterly reporting to create time for intervention. The department’s proposal would require CCRCs in distress to submit a financial plan within 60 days for the department to approve or reject; the department said that requirement is intended to compel timely action and avoid the “reactive” posture that followed past crises.

LeadingAge New Hampshire, which represents nonprofit CCRCs, testified that members participated in the drafting process and generally support the bill’s approach, though the association noted smaller or independent-living-only operators could face heavier compliance demands. LeadingAge said it appreciated language that allows operators meeting occupancy and solvency benchmarks to avoid escrowing entrance fees, because banks are sometimes reluctant to accept escrow arrangements.

The measure’s supporters said the overhaul balances increased oversight for troubled facilities with flexibility for healthy operators. No formal committee vote occurred at the hearing; the department and providers said they would continue to negotiate technical refinements.

Why it matters: CCRCs accept substantial entrance fees and promise long-term care. Financial failure at a CCRC can jeopardize residents’ housing and large amounts of personal wealth; department officials said federal and state tools have been insufficiently proactive in recent cases.

What’s next: The committee will consider the bill in subcommittee and work sessions. Department staff signaled willingness to refine technical provisions; providers asked for continued collaboration on bank, escrow and actuarial details.