Buyer Beware When it Comes to “Free” For-Profit Senior Services Referrals
Numerous websites purport to help adults find answers to questions about their aging parents. These are known as online senior living referral services. The chairman of the U.S. Senate Aging Committee recently began an investigation into assisted living referrals by A Place for Mom, one of the largest commercial advice hubs. At the same time, more states are requiring sites like these to publicly disclose their financial arrangements with the facilities they recommend.
The business model for these companies acts like so: These advice sites steer users to senior living or other service providers for a fee paid by the senior living providers. Generally speaking, the sites steer users to whichever senior service providers pay them. There is no quality control when it comes to making recommendations to adults looking for a place for their older loved ones. They refer most frequently to those sites that pay them the most, either through a fee, a commission, or by purchasing advertising.
Investigation determines that recommended facilities are not top-quality
It’s important to understand that these sites are not making recommendations based on the quality of the nursing homes that advertise with them, but rather, by whoever pays them the most money. A recent Washington Post investigation determined that more than a third of the facilities that A Place for Mom recommends were cited by regulators for poor care. Some of these sites do include consumer ratings, but the Washington Post reported that many of the ratings are fake.
The conflicts of interest got the attention of Senate Aging Committee Chair Bob Casey (D-PA), who, in a letter to A Place for Mom, said that the company’s “claims that it is unbiased are undermined by its own materials. Listings…are limited to facilities from which it receives a commission.”
States are cracking down on referral services
Meanwhile, states are taking notice of the many problems caused by this system which favors providers over consumers. The states are moving to regulate these placement agencies. California requires placement agencies to be licensed. Several states are making referral firms disclose their financial relationships with the providers. States such as Arizona, Colorado, Washington, and Maryland have required referral companies to tell consumers how they are compensated. A similar bill is being considered by the California legislature.
The Maryland law goes into effect in October. It is, however, limited to assisted living referrals. It requires referring sites to provide potential clients with information about their financial relationships with the providers. It also limits the sites from sharing or selling personal medical information and requires the companies to carry insurance.
Talk to a Virginia Beach Elder Law Attorney Today
The Law Office of Angela N. Manz represents the interests of aging Virginians who are concerned about their estates. We can help you with all aspects of estate or long-term care planning. Call our Virginia Beach estate planning lawyers today to schedule an appointment, and learn more about how we can help.
Source:
howardgleckman.com/2024/07/03/free-for-profit-senior-services-referrals-buyer-beware/
