The Michigan Attorney General (AG) recently responded to almost 40 complaints from long-term care residents or their families regarding charges for COVID-19 fees. The AG’s office sent “cease and desist” letters to 11 facilities in response to their charging residents $900 COVID-19 fees that would violate the state’s consumer protection laws.
The letters instructed the facilities that they have 10 days from the receipt of the letters to respond or face a formal investigation and potential legal action. Facilities also have the option of signing an agreement that requires them to cancel and refund the $900 fees to residents, along with indicating that they will not violate the Michigan Consumer Protection Act (MCPA) again, together with some other stipulations.
One facilities’ senior official indicated that the one-time fee was intended to partially offset increased costs associated with COVID-19. Those costs included meal service, personal protective equipment (PPE), and cleaning services. That official also reported that residents who pushed back regarding the fees were told they did not have to pay it. This brought the issue of fairness into question for those residents who may have been too trusting or afraid to express their opposition to the fees.
The AG alleges that the fee was inconsistent with residents’ leasing agreements and implicated several unfair MCPA trade practices.
Compliance Perspective
Charging residents additional fees related to COVID-19, in violation of the state’s Consumer Protection Act, and unfairly dismissing the charges for residents who complained, yet allowing residents who did not complain to pay the charges places facilities at risk for formal investigation and potential legal action. It may also be considered a violation of state and federal regulations against discrimination when residents pay because they are too trusting or are uncomfortable making a complaint.
Discussion Points:
- Review policies and procedures regarding compliance with consumer protection laws and residents’ rights to be treated equally and protected from discrimination.
- Train staff to be aware that some residents may be hesitant to express concerns or to complain when treated unfairly, and how to support those residents to ensure their rights are protected.
- Periodically audit to ensure that billing for services does not violate state or federal laws.
