The OIG released his Continuing Care Retirement Communities Audit Report this week, and the headline has started circulating around news outlets due to its suggestion the state lost $88 million in bed taxes over four years due to inaccurate certificate filings. The findings and recommendations in the report highlight the OIG’s lack of knowledge or understanding for the federal bed tax program and does not call attention to the Kansas statute allowing essentially any aging services entity to register as a CCRC.
The Kansas Department for Aging and Disability Services as well as the Kansas Insurance Department clarified these points in their responses with the Kansas Insurance Department stating the report, “lacks foundation in fact, reaches flawed conclusions based upon unreliable extrapolations, demonstrates a lack of understanding of the realities of the senior care market, misinterprets and misapplies the law, demonstrates a lack of understanding of the authority of the Department, is overreaching in scope, and should be discounted nearly in its entirety.” LeadingAge Kansas will continue to monitor the impacts of this report.
