SPRINGFIELD – In an effort to ensure transparency between residents and life care facilities, State Senator Laura Ellman sponsored a law to expand pre-sale disclosures to consumers purchasing a refundable life care contract.

“When seniors move into these life care facilities, they expect their beneficiaries and loved ones will have their expenses taken care of after they pass,” said Ellman (D-Naperville). “To mitigate unexpected financial risk, this law will create a transparent disclosure agreement for seniors to be better informed of what they are signing.”

This law requires a provider to give consumers a pre-sale disclosure notice that specifies the refund procedure and other data points regarding how many entry fees have been refunded by the provider and how many refunded entry fees are outstanding Further, the law requires providers, who intend to repurpose the living unit, to give the beneficiaries an opportunity to acknowledge and agree to the reappropriation and the specific date of the change.

“Seniors and their families should know how their investments will be handled prior to signing a contract,” said Ellman. “This law removes confusion in the policy and allows both parties to know what they are agreeing to.”

House Bill 4276 was signed into law on Friday and goes into effect Jan. 1, 2025.