Recently, seven authorities including the Ministry of Civil Affairs (MCA) have jointly released the Guiding Opinions on Strengthening the Regulation of Prepaid Fees Collected by Elderly Care Institutions (the "Opinions"), which will take effect on October 1, 2024, and remain in effect for five years.
The Opinions consist of four parts containing 14 requirements, covering the following areas: firstly, clarifying the overall requirement of reducing risks and fostering development; secondly, regulating the fee collection practices of elderly care institutions in a holistic manner; thirdly, enhancing supervision and management through various measures; and lastly, ensuring organization and implementation. Notably, the Opinions require that elderly care institutions that adopt the prepaid fees method shall disclose information such as prepaid fee items and standards in prominent locations such as service venues and official websites and report such information to the civil affairs departments in charge of supervision. Provincial civil affairs departments, together with relevant departments, can determine the longest prepaid period and the maximum prepaid deposit amount for local elderly care services based on local conditions. However, the prepaid period for elderly care services fees cannot exceed 12 months, and the deposit charged to an individual elderly person shall not exceed 12 times the monthly bed fee for that person.