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Seven departments including the Ministry of Civil Affairs put forward opinions to regulate the prepayment of elderly care institutions.

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People's Daily Online, Beijing, May 10 (Reporters Wen Lu and Song Zijie) Today, reporters learned from the Ministry of Civil Affairs' regular press conference for the second quarter of 2024 that seven departments including the Ministry of Civil Affairs recently issued the “Regulations on Strengthening the Supervision of Advance Fees in Elderly Care Institutions” instructions”.

The opinions encourage elderly care institutions to provide services to the elderly by charging monthly fees. Elderly care institutions that adopt the prepayment method are required to make public announcements. The provincial civil affairs department can, based on local conditions, work with relevant departments to determine the longest advance collection period for local elderly care service fees and the maximum advance collection amount for deposits and membership fees. However, the maximum advance collection period for elderly care service fees must not exceed 12 months. The amount charged to a single elderly person The deposit shall not exceed 12 times the monthly bed fee for the senior citizen. Deposits and membership fees are managed through commercial bank third-party custody and risk deposits to ensure the safety of funds.

The opinions also stipulate the use of prepaid fees in nursing homes. The opinions make it clear that the prepaid fees of elderly care institutions are mainly used to offset the expenses that the elderly need to pay during their stay in the institution, to make up for the lack of funds for the facility construction of the institution, or to develop the institution's elderly care service business. Membership fees may not be used for high-risk investments such as non-self-use real estate, securities, and financial derivatives. Elderly care institutions shall not induce the elderly or their agents to pay advance fees by promising to repay principal and interest or provide other investment returns.

In terms of refunds, the opinions require that for prepaid fees that meet the refund conditions stipulated in the service agreement, the nursing home institution should refund the fees in a timely manner in accordance with the agreement, and shall not refuse or delay. If a nursing home institution suspends or terminates its services due to closure, closure of business, or other reasons, it should issue reminders of changes in operating conditions in conspicuous locations such as its service venues and portals 30 days in advance, refund remaining fees in a timely manner, and properly resolve follow-up service issues.

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