Need some advise. I have a client who has long term care insurance and has received payments from them. She should be taking the money she gets from the LTC to pay for our caregiving services, but instead has used it to live on. I know it can take a while for payments to kick in for LTC, so I have been very accommodating and now she is 4 weeks behind on payments. She now states she can't pay and has no money. What actions can I take to recoup our money? She I call APS, is that considered exploitation/neglect? Can the LTC insurance company help? Collections vs lawsuit? Any help would be appreciated.
Do you have proof she has been paid?
Does she have an emergency contact or family? I would first call them and tell them she has not paid you. Tell them without payment you cannot continue to work for this woman. If you get nowhere with them, call the insurance company. In the end, your a business not a charity. If you feel that this woman needs help, then call APS telling them you can no longer work for this woman because of non-paynment. But you feel she is a vulnerable adult.
Depending upon the amount owed, it is probably a smalls claims issue. But good luck with that.
If your client is elderly, please consider they may now have memory and/or cognitive impairment. Does she have a PoA? A close relative listed as her emergency contact (you did ask for this, right?)
There is no other entity that can help you reclaim the money. APS does not involve itself in financial matters.
In the future you should consider requiring automatic payments directly from their checking accounts. Waiting for elders to pay you by check...? I don't even allow my own Mother to do this. She's 95 and getting more forgetful and paranoid. I auto pay her expenses that I cover from her checking. Or, make it so she can pay you via credit card. Yes, there may be a cost to do this but there's more of a cost to waste time with deadbeats.
I've been a business owner for almost 4 decades. I hate not getting paid.
If this client can't really do their ADLs without your services, then you will need to report her to APS if you can't find a PoA. Sorry, this seems harsh but if she's descending into dementia and has no PoA then connecting her with APS is the only way to get her the help she needs now and into her future.
You do just as you would with any client that has an over due bill.
You send a notice.
You give a date as to when you want payment.
You give a date as to when you will terminate service.
When that date arrives you do not send a caregiver to that person.
You turn the debt over to your attorney (I assume as a business owner you have a lawyer) and let them send a letter. Make sure that the letter specifies that not only does the client owe you your fee but any % due for an over due bill AND they pay the attorney fee.
If the notice you send to the client has a date that you will terminate service they have been notified and they either chose to get another caregiver or they don't that is their choice if they call APS and complain you are covered.
You could notify the LTC insurance and they may have something to say to your client since the funds are not being used as they were intended to be used.