Many of my clients are now asking about different living options should they choose to spend their retirement years in a Continuing Care Retirement Community (CCRC), or Life Care Community. A CCRC is different from other housing and care options because it offers a long-term contract that provides for housing, services, and health care, usually all on one campus. Residents in a CCRC enjoy an independent lifestyle with the knowledge that if they become sick or frail, their needs will continue to be met.
The distinguishing factor of a CCRC is that a contract between the resident and the facility is required. By entering into a contractual agreement with the CCRC, a resident receives guaranteed access to services for a specified period, usually for his or her lifetime. The resident may access different facets of the housing, services, and nursing care as his or her needs change.
Usually, the CCRC requires one-time entry fees or down payments, and charge a monthly fee that covers rent, maintenance services, meals, and future nursing care expenses.
Recent bankruptcy filings have focused attention on the CCRC, and particularly on the common practice of requiring a large advance payment ($100,000 or more) from a new resident.
The following checklist provides a guide on choosing an appropriate CCRC:
Qualifications: Is the provider appropriately licensed with the state to operate a continuing care retirement community? How long has the provider been in business?
Solvency: How great are the provider’s assets/liabilities? What financial reserves are held by the provider? What financial reserves are required by the state?
Facilities: Does the continuing care retirement community have independent living units or a residential or nursing care facility?
Fees: Is a monthly fee required? What services are covered by the monthly fee? Do rates increase when a resident moves into a nursing facility?
Advance Payments: Is a deposit required to reserve a place in the community? How large a deposit? Are deposits and entrance fees refundable?
Rescission and Cancellation by Resident: Is a right to rescind provided in the contract?
Access to Health Care: Is nursing facility care provided? What happens if no nursing facility bed is available when the resident requires nursing facility care? Who decides when the resident requires nursing facility care?
The CCRC does offer great benefits to seniors, such as security, peace of mind, and care that keeps up with our needs as we age. All that being said, there is an obligation to understand these communities are no different than any other business. It is well worth the extra time and expense, to investigate and complete your own due diligence.
Be Educated! Be Proactive!
Recent Comments