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New YorkS 88022025-2026 Regular SessionSenateWALLET

Relates to oversight of continuing care communities; repealer

Sponsored By: Cordell Cleare (Democratic)

Signed by Governor

RULESHEALTH

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 6 benefits, 1 costs, 1 mixed.

Payment safeguards for insured community care

The financial regulator approves long-term-care insurance arrangements used in community applications. The health commissioner, consulting the financial regulator, sets resident disclosures and rules for handling premiums and monthly care fees. These rules cover nursing facility or home health services paid partly or fully through specified insurance or medical assistance payments. The arrangement must also comply with Public Health Law's continuing care requirements.

State reviews retirement community fees and contracts

New York's financial regulator reviews community finances, resident contracts, entrance fees, monthly care fees, housing charges, and pricing methods. Contract amendments and fee changes outside approved pricing rules need approval. Monthly care fee changes within applicable cost-index limits can proceed without separate approval after advance notice to the regulator. A resident's monthly care fee cannot rise because that resident needs more services. Changes to cooperative or condominium equity arrangements require consultation with the Attorney General.

Financial regulator oversees troubled retirement communities

A community keeps its limited insurance-law exemption only by following state rules on finances, actuarial standards, contracts, and rates. It must also comply with the continuing care requirements in Public Health Law. Under one enforcement rule, violating a proper order, rule, or regulation can trigger action, not just those issued by the council. The financial regulator determines insolvency using the Insurance Law's standard. Communities remain subject to Insurance Law insolvency proceedings, and the regulator must consult the community council before starting those actions.

Retirement communities face regular state inspections

State health and financial officials must visit and examine each continuing care community at least once every three years. They can also examine applicants and review records relevant to their duties, with or without advance notice. Final examination reports are public and sent to the Continuing Care Retirement Community Council.

Retirement communities must keep financial reserves

Operators must keep reserves and supporting assets that meet the state financial regulator's standards. Required liquid assets cover up to 12 months of debt principal, interest, taxes, and insurance. They also cover up to six months of estimated operating costs and up to 12 months of repairs and replacements. The regulator sets required amounts, asset standards, and additional cash-flow conditions.

State checks community and at-home care plans

The health commissioner approves or rejects community applications only after other required approvals are obtained. Operators adding continuing care at home must submit plans describing services, markets, fees, and contracts to health and financial regulators. An independent actuarial study must show that the contracts will not threaten the community's financial health. A market study must show enough consumer interest and no harm to services for existing contract holders. Operators must provide proof of notice to existing contract holders, and the financial regulator's review informs approval conditions.

Narrower enforcement grounds for care communities

One specific enforcement ground no longer includes an operator's violation of a council order, rule, or regulation. Failure to follow Public Health Law's continuing care requirements remains a ground for action. The law also repeals section 34 of a referenced 2025 continuing care oversight law. The supplied text does not explain that section, so the repeal's effect on residents and operators is unclear.

Community financial checks come with late fees

Operators must file annual audited finances, reserve-asset lists, and actuarial information with both health and financial regulators. Annual statements are due within four months after fiscal year-end unless an extension is granted. A qualified actuarial review is required at least every three years. Annual debt-service calculations and ten-year revenue and expense projections are due 60 days before each year begins or the community opens. The commissioner can charge late fees for overdue statements; the law does not set the fee amount.

Sponsors & Cosponsors

Sponsor

  • Cordell Cleare

    Democratic • Senate

Cosponsors

  • Jake Ashby

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 215 • No: 1

House vote • 1/21/2026

Assembly floor vote

Yes: 139 • No: 0

Senate vote • 1/20/2026

FLOOR Vote

Yes: 56 • No: 1

committee vote • 1/12/2026

Rules Committee Vote

Yes: 20 • No: 0

Actions Timeline

  1. SIGNED CHAP.76

    2/13/2026Senate

  2. DELIVERED TO GOVERNOR

    2/13/2026Senate

  3. RETURNED TO SENATE

    1/21/2026House

  4. PASSED ASSEMBLY

    1/21/2026House

  5. ORDERED TO THIRD READING RULES CAL.50

    1/21/2026House

  6. SUBSTITUTED FOR A9486

    1/21/2026House

  7. REFERRED TO HEALTH

    1/20/2026House

  8. DELIVERED TO ASSEMBLY

    1/20/2026Senate

  9. PASSED SENATE

    1/20/2026Senate

  10. ORDERED TO THIRD READING CAL.30

    1/12/2026Senate

  11. REFERRED TO RULES

    1/8/2026Senate

Bill Text

  • Original

    1/8/2026

    PDF

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