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SB 1383

🟡Relating to the regulation of referral agencies for senior living communities.

🟡 SB 1383: Senior care referral rules

What it says it does:
SB 1383 sets out to regulate agencies that help families find assisted living or memory care. It says these agencies must give clear disclosures, carry insurance, and avoid conflicts of interest when connecting seniors with facilities.

What it actually changes:
The bill makes it legal for referral agencies to be paid based on the volume or value of placements. It also exempts them from the state’s patient-solicitation law. Agencies must tell families their list may not include every suitable community, but there is no clear enforcement or penalty system.

Who is pushing for it:
A Place for Mom, Caring, and assisted living trade groups supported it. Consumer advocates such as AARP filed neutral or cautious comments.

Who benefits:
Large national referral networks and senior living chains that can afford to pay for visibility. They gain legal protection for commission-based business models and fewer risks of state investigation.

Who gets left out or exposed:
Smaller or rural facilities that cannot pay referral fees, and families who believe they are seeing all available options when they are not. Independent advisors and community-based advocates also lose ground.

Why this matters long term:
It formalizes a private, pay-to-play system in elder care placement. Agencies can steer families toward higher-paying facilities without strong oversight or reporting. The bill locks this structure in place while calling it consumer protection.

What to watch next:
Look for how referral agencies describe their coverage and whether consumer complaints increase once the new rules take effect. Lawmakers may revisit the issue if steering or market concentration becomes visible in public data.

Bottom line:
SB 1383 gives families disclosures but no real enforcement. It strengthens the position of large referral firms while leaving smaller providers and consumers with limited transparency.

Questions to ask lawmakers:

1. How did you weigh allowing volume or value based referral payments, and what would tell you the benefits outweigh the steering risk over time?
2. Without a clear enforcement system and penalties, who is supposed to catch bad actors, and what happens when families are misled?
3. Would you support requiring referral agencies to publish simple coverage information, like how many local licensed facilities are not shown to consumers and why?

#SB1383 #TexasPolicy #SeniorCare #ConsumerProtection #WatchTheRules

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