Can I charge a non-refundable security deposit for residents in a assisted living facility?

Questions:Can I charge a non-refundable security deposit for residents in a assisted living facility?


Below are the applicable rules from HCPF for ACFs, so when you read through it, particularly the last section, it is not permissible to collect a security deposit for ACF clients. There are some ALRs that will charge a move in fee or community fee that is non-refundable.

For Private Pay facs and private pay residents, they can ask for a security deposit as long as it is disclosed in the written agreement. Here is that regulation in Chapter VII: 1.105(2) Resident Agreement. A written agreement shall be executed between the facility and the resident or the resident's legal representative at the time of admission. The parties may amend the agreement provided such amendment is evidenced by the written consent of both parties. No agreement shall be construed to relieve the facility of any requirement or obligation imposed by law or regulation. 105(2)(a) Content. The written agreement shall specify the understanding between the parties regarding, at a minimum the following: (i) charges, refunds and deposit policies;

Here are the ACF rules, and this guidance comes from our HCPF friends:

C.R.S. Section 25.5-4-301(1)(a)(1), states “Except as provided in section 25.5-4-302 and subparagraph (III) of this paragraph (a), no recipient or estate of the recipient shall be liable for the cost or the cost remaining after payment by medicaid, medicare, or a private insurer of medical benefits authorized by Title XIX of the social security act, by this title, or by rules promulgated by the state board, which benefits are rendered to the recipient by a provider of medical services authorized to render such service in the state of Colorado, except those contributions required pursuant to section 25.5-4-209 (1).”

8.012.2.A. Providers are explicitly prohibited from collecting payment, or attempting to collect payment through a third party, from a recipient or the estate of the recipient for the cost or the cost remaining after payment by Medicaid, Medicare, or a private insurer of Medicaid covered items or services rendered to Medicaid recipients.
8.012.2.B. Providers shall be liable to a recipient or the estate of the recipient if the Provider knowingly receives or seeks collections through a third party of an amount in payment for Medicaid covered items or services.
8.012.2.C. Providers are prohibited from collecting, or attempting to collect, payment from recipients for Medicaid covered items or services regardless of whether Medicaid has actually reimbursed the Provider and regardless of whether the Provider is enrolled in the Colorado medical assistance program.
8.012.2.D. Providers shall be liable for the amount unlawfully received, statutory interest on the amount received from the date of receipt until the date of repayment, plus a civil monetary penalty equal to one half of the amount unlawfully received. Provider has solicited or accepted from an eligible client, his or her family, friend, estate, or other representative an amount over and above the Medical Assistance program reimbursement amount for covered goods or services, excluding any required co payment, coinsurance, or other client cost-sharing amounts.

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