Illinois Administrative Code › Title 77 - PUBLIC HEALTH › Part 300 - SKILLED NURSING AND INTERMEDIATE CARE FACILITIES CODE › Subpart P - RESIDENT'S RIGHTS › Section 300.3260 - Resident's Funds

Current through Register Vol. 48, No. 28, July 12, 2024
a) A resident
				shall be permitted to manage his own financial affairs unless he or his
				guardian or if the resident is a minor, his parent, authorizes the
				administrator of the facility in writing to manage such resident's financial
				affairs under subsections (b) through (o) of this Section. (Section 2-102 of
				the Act)
b) The facility shall at
				the time of admission, provide in order of priority, each resident, or the
				resident's guardian, if any, or the residents representative, if any, or the
				resident's immediate family member, if any, with a written statement
				explainingto the resident and the resident's spouse their spousal
				impoverishment rights as defined at Section 5-4 of the Illinois Public Aid
				Code, and at Section 303 of Title III of the Medicare Catastrophic Coverage Act
				of 1988 ( P.L. 100-360 ), andthe resident's rights regarding personal funds and
				listing the services for which the resident will be charged. The facility
				shallobtain a signed acknowledgement from each resident or the resident's
				representative, if any, or the resident's immediate family member, if any, that
				such person has received the statement. (Section 2-201(1) of the Act)
c) The facility may accept funds from a
				resident for safekeeping and managing, if it receives written authorization
				from, in order of priority, the resident or the resident's guardian, if any, or
				the resident's representative, if any, or the resident's immediate family
				member, if any; such authorization shall be attested to by a witness who has no
				pecuniary interest in the facility or its operations, and who is not connected
				in any way to facility personnel or the administrator in any manner whatsoever.
				(Section 2-101(2) of the Act)
d)
				The facility shall maintain and allow, in order of priority, each resident or
				the resident's guardian, if any, or the resident's representative, if any, or
				the resident's immediate family member, if any, access to a written record of
				all financial arrangements and transactions involving the individual resident's
				funds. (Section 2-201(3) of the Act)
e) The facility shall provide, in order of
				priority, each resident, or the resident's guardian, if any, or the resident's
				representative, if any, or the resident's immediate family member, if any, with
				a written itemized statement at least quarterly, of all financial transactions
				involving the resident's funds. (Section 2-201(4) of the Act)
f) The facility shall purchase a surety bond,
				or otherwise provide assurance satisfactory to the Departments of Public Health
				and Insurance that all residents' personal funds deposited with the facility
				are secure against loss, theft, and insolvency. (Section 2-201(5) of the Act)
1) If a surety bond is secured, it must be
				issued by a company licensed to do business in Illinois, the amount of bond
				must be equal to or greater than all resident funds managed by the facility,
				and the obligee named in the bond must be the Illinois Department of Public
				Health or its assignees.
2) If an
				alternative to a surety bond is secured, the alternative must provide a
				protection equivalent to that afforded by a surety bond. To be acceptable, the
				alternative must have a person(s) or entity(ies) designated who can collect in
				case of loss (e.g., residents, the Department). The alternative must also
				provide a guarantee that lost funds will be repaid. The guarantee may be made
				either by an independent entity (e.g., a bank) or the facility. If the facility
				provides the guarantee, it must be backed by facility money at least equal to
				resident funds. This money must be reserved solely for the purpose of assuring
				the security of resident funds. Two examples of acceptable alternatives to
				surety bonds are letters of credit and self-insurance. Both surety bonds and
				alternatives must protect the full amount of residents' funds deposited with
				the facility.
3) Any alternative to
				a surety bond shall be submitted to the Department for review and approval.
				Alternatives that meet the requirements of this Section and were in place prior
				to October 1, 1994, must be submitted to the Department for review and approval
				within 120 days after October 1, 1994.