1.A.3.a. Fee transparency

Rule

Prior to the initial acceptance of any funds, the operator must inform applicants of all fees and charges for which they will be, or could potentially be, responsible. This information needs to be in writing and signed by the applicant.

Levels

This standard rule applies to all recovery residence levels of support.

Guidance

• From a consumer rights perspective, new resident applicants and/or their financially responsible parties (e.g. parents) should be fully aware of all potential fees and charges before they pay or agree to pay anything. They must be able to make informed decisions. Many well meaning providers may have developed business practices that require individuals to submit initial payments prior to an orientation. Or, they have highlighted some fees (e.g. price per month), but failed to discuss “hidden fees” or expenses that residents may incur as a condition of their continued stay: penalties, late charges, insurance co-pays or outside vendor charges (UA lab confirmations or medical assessments). A frustrated House Manager cannot decide to start charging fines for not cleaning up the kitchen, if those potential fines were not disclosed in the orientation or resident agreement. A provider can renegotiate terms, but a process needs to be in place that protects the consumer’s rights. Likewise, a provider cannot require a resident as a condition of continued stay to pay for a psych eval or for outpatient treatment or an outside UA lab, if those potential costs were not disclosed up front.

• Proof of negative UAs are often a condition of continued stay in a recovery residence. If a relationship has been developed with a treatment provider to bill a resident’s insurance for UA labs, the recovery residence must disclose during orientation the potential expenses (deductible, co-pays) for which residents or their parents are liable. While the provider may not be able to quote the actual amount, they can explain this may run into the thousands or tens of thousands of dollars. Minimizing the potential financial liability is unethical.

• More and more, recovery residence providers are leveraging technology to streamline processes and meet consumer expectations. Providers may meet this expectation through electronic documents and signatures.

Evaluation

• Does the recovery residence inform applicants of all fees and charges prior to accepting any funds?

  • If yes,

    • Is the information provided in writing? AND

    • Does the applicant sign that they have been informed of the financial terms?

• Does the disclosure include all fees and charges for which they will be, or could potentially be, responsible?

Evidence

• Policy and procedure
• Resident orientation checklist

Resources

https://narronline.org/wp-content/uploads/2019/03/NARR-Drug-Testing-Policy.pdf