The column below reflects the views of the author, and these opinions are neither endorsed nor supported by WisOpinion.com.
Finding the right assisted living community for an aging parent or loved one can be one of the most emotional and confusing decisions a family will ever face.
Families are often doing this under stress — balancing medical needs, finances, and family dynamics — and it’s natural to turn to professionals for help. In recent years, referral agencies have stepped in to fill that role, marketing themselves as experts who can connect families with “the best options” for free.
But those services aren’t truly free.
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Most referral agencies have contracts with assisted living communities. When a family chooses a community based on that referral, the agency is paid a fee — often thousands of dollars — by the facility. Those costs can ultimately be passed on to consumers in the form of higher rates. And because agencies may earn higher fees from different providers, there’s an incentive to recommend certain communities over others.
The system, as it currently exists, lacks the transparency families deserve.
That’s why the Wisconsin Assisted Living Association (WALA) strongly supports Assembly Bill 255/Senate Bill 262, legislation now circulating among lawmakers that would shine a light on these practices. The proposal is straightforward, balanced, and pro-consumer. It ensures that families have clear, honest information when making one of life’s most important decisions.
What the legislation would do
Under Assembly Bill 255/Senate Bill 262, referral agencies would be required to disclose their relationships with assisted living providers — so families know whether a recommendation comes with a financial tie. It would also require greater transparency around referral fees and cost structures, helping consumers understand who is paying whom, and why.
Equally important, the legislation allows for consumers to specify if they do not want a referral agency to use or maintain their personal information. Currently, referral agencies maintain and use individual information for the duration of their life which more than likely, consumers are unaware of this practice.
In addition, the legislation requires that referral agencies list on their website only the assisted living communities they contract with. This also protects against misleading a consumer to believe a referral agency contracts with an assisted living community when they are not.
Why transparency matters
Wisconsin’s population is aging rapidly. Over the next decade, the number of residents aged 65 and older is expected to grow faster than any other group. As more families navigate the search for quality long-term care, the influence of referral agencies will only continue to expand.
These agencies can play a helpful role — but only if families can trust that recommendations are made in their best interest. Without transparency, families may unknowingly make decisions based on incomplete or biased information.
This lack of clarity doesn’t just harm consumers. It also affects assisted living providers that operate ethically and work hard to deliver quality care. When referral practices are driven by undisclosed payments, communities that may be a better fit for a resident’s needs can be overlooked.
Assembly Bill 255/Senate Bill 262 addresses this problem by creating a fair, transparent system that protects everyone involved.
A step toward fairness and trust
WALA represents over 2,000 assisted living providers across Wisconsin, from small, family-run homes to larger communities. Our members share a common goal: to provide safe, compassionate, high-quality care to residents and peace of mind to their families.
We believe that transparency builds trust — and trust is the foundation of quality care.
Families deserve to know when financial relationships influence the advice they receive. Assisted living communities deserve a fair and consistent process. And referral agencies deserve clear rules that help them operate ethically and competitively.
This legislation doesn’t restrict choice or add red tape. It simply ensures that families making deeply personal decisions can do so with full information and confidence.
We urge lawmakers to support Assembly Bill 255/Senate Bill 262 and take this important step toward protecting Wisconsin’s seniors and strengthening trust in our long-term care system.
Because when it comes to caring for our loved ones, transparency isn’t too much to ask — it’s the least we can do.
– Mike Pochowski is president and CEO, Wisconsin Assisted Living Association.
