Your mother, father, aunt, etc., is moving to a nursing home. You accompany your dad, for example, so he won’t be going through this alone, and he might need help completing paperwork. The nursing home asks, or requires, that you sign as hi—STOP! Don’t sign!
The nursing home asks you to sign as your dad’s “personal representative.” Or to sign as guarantor. Or to sign anything. What you are likely doing is signing an agreement to be held financially responsible if your dad, through his insurance or Medicaid, does not or cannot pay his bill. This might happen if his Medicaid application is not approved, or if insurance denies his claims, or any number of reasons.
But, the nursing home simply wants you to sign as the “responsible relative,” the person who will take steps to see that Medicaid or insurance pays your mother’s nursing home bills, right? Or as the point person who will track down information, call the insurance company, provide information, right? You would certainly agree to help your mother this way. The problem is that you have unwittingly agreed to also be financially responsible to the nursing home for your mother’s bills. Just ask Judy Andrien.
This practice by nursing homes occurs regularly, at least according to what I see and hear. It happened to my family member, where the nursing home left his sibling lying out in the hallway on a gurney until the family member signed as “personal representative,” assuring this family member that “oh, it’s just a formality–we never pursue payment.” They did pursue payment.
It is illegal under the federal “Nursing Home Reform Law” (summarized here) to require or request someone to sign as a guarantor as a condition of someone (usually a family member) being admitted, or of being permitted to continue to stay. Nursing homes often get “crafty,” however, by asking family to voluntarily sign, whether as personal representatives, the responsible party, guarantor, etc. “It’s just a formality….”
As an attorney, I have handled matters where stunned family members come to me with 5-figure bills from the nursing home, where the nursing home says that they signed as a financially-responsible party and now the bill is due. At this point, one of the the only arguments is that my client did not sign voluntarily which can be a difficult argument to make, not to mention costly in attorney fees.
My advice if you accompany someone other than your spouse to a nursing home to be admitted? Do not sign anything. Period.
If you have any questions, contact me at firstname.lastname@example.org.