Bill would require actuarial reviews of life‑care CCRC contracts to boost transparency for residents

Representative Macri introduced House Bill 2,384 on Jan. 23, telling the House Health Care and Wellness Committee she has worked on continuing‑care retirement community (CCRC) policy since 2017 and framed the bill as a transparency measure to protect residents. The bill would require CCRCs that offer life‑care contracts — agreements that promise nursing, medical or personal care in exchange for an entrance fee plus periodic payments — to submit an actuarial analysis with every other registration cycle to the Department of Social and Health Services (DSHS). DSHS would forward those analyses to the Office of the Insurance Commissioner (OIC) for review, and the OIC would assess whether a community’s actuarial balance is sufficient to meet obligations under moderately adverse conditions.

Laura Saunders, president of the Washington Continuing Care Residents Association, urged passage and said the bill has broad resident support; she told the committee she saw 347 signatures on the sign‑up list and described the proposal as a safeguard for seniors’ savings. “This is not a niche issue,” Saunders said, urging lawmakers to pass HB 2,384 to protect residents’ homes and care.

Kim Hickman, vice president of the same resident association and a 40‑year insurance veteran, asked the committee to broaden the bill beyond an industry‑defined “Type A” contract so the OIC could review actuarial reports for any CCRC that takes an entrance fee in exchange for promised protection. Hickman also requested that OIC review results be shared with residents and offered stakeholder help drafting amendments.

Paul Beck, a resident and past chair of an independent living resident council, described financial problems at The Kenny in West Seattle and said stronger oversight might have prevented a receivership and loss of residents’ financial security. “Oversight of the Office of the Insurance Commissioner could have brought the actions of Heritage Ministries to light,” Beck said, recounting a lengthy history of transfers and sales that he said left residents uncertain.

Tyler Langford, a policy analyst with the OIC, testified in support and said the office was prepared to review submitted actuarial analyses, which he said would bolster consumer confidence and help communities demonstrate solvency. LeadingAge Washington, representing registered CCRCs, supported transparency but warned of review costs and asked for clearer content standards and rulemaking to guide submissions and appeals.

Committee staff and members discussed appeals and administrative process; staff said appeals of OIC findings would proceed within DSHS’s administrative hearing process rather than in superior court. The committee did not take a final vote on HB 2,384 during the Jan. 23 public hearing and suspended further action pending clarifying amendment language.

Next steps: Representative Macri said she anticipates a clarifying amendment in the coming days and expects the committee to take up the bill again for executive consideration.