One of the key benefits of a continuing care retirement community (CCRC), also called a life plan community, is the availability of onsite care services for residents. CCRCs are designed to cover the full continuum of seniors’ needs — from independent living services such as maintenance and housekeeping to higher-level care like memory support and skilled nursing for residents with significant health concerns.
Care provided at CCRCs generally falls into two categories: temporary care and permanent care. For example, an independent living resident who has knee replacement surgery will typically need short-term rehabilitation and therapy. If recovery goes well, that resident can return to independent living. Conversely, a resident who suffers a massive stroke and develops lasting disabilities may require skilled nursing care permanently.
>> Related: CCRCs Keep Couples Close in Sickness and Health
Different CCRC contracts = different terms and fees for care
A frequent question from prospective residents is: “What happens to my monthly fee if I require care in the healthcare center?” That’s a vital question, because how fees change depends on the specific contract the CCRC offers. You should get a clear answer from every community you consider.
CCRCs offer several types of residency contracts. It’s important to understand how each contract treats monthly fees if you later need assisted living or skilled nursing. Generally, there is a trade-off between the upfront entry fee and the monthly fees paid while independent versus the costs you could face if you later require higher levels of care. Some contracts keep initial costs lower but charge more when care is needed. Lifecare contracts, by contrast, often require a higher entry fee or higher monthly payments early on but provide more predictable, lower costs for care compared to current market rates should you require it later.
Temporary versus permanent care and housing charges
Another important issue is whether you continue to pay for your independent living residence while receiving care. During a temporary stay in the health center, some communities require residents to continue paying the independent living monthly fee in addition to any health center charges. When a transfer to the health center becomes permanent, residents are typically required to release their independent living residence; at that point, monthly charges for that residence usually stop.
Understanding the fine print
Reviewing contract language carefully will help you understand how a specific CCRC handles fees when residents need care. Below is an example of the kind of contract language you might encounter:
A single resident in need of health center services will continue to pay the same single-occupancy monthly fee for the living unit while receiving care for up to 90 cumulative days. When transferring to a higher level of care on a permanent basis, the resident may surrender his living unit and then pay the current single-occupancy monthly fee for a one-bedroom deluxe apartment or the monthly fee for the surrendered unit, whichever is less. Extra charges for medical supplies and services apply.
That example comes from one community’s contract; other CCRCs may use different terms. For instance, if one spouse needs permanent healthcare while the other remains independent, some contracts reduce the independent spouse’s fee to reflect single-occupancy rates while the spouse in care pays the applicable health center charges. Under lifecare contracts, however, a couple may continue paying the same monthly rate as before even when one spouse transitions to permanent care.
>> Analyzing the CCRC Residency Contract: A Sample Case Study
Questions to ask before you commit
In short, CCRC pricing can change depending on whether care is temporary or permanent. Before making a decision, confirm how a community defines and handles those situations. Useful questions to ask management include:
- How do you define temporary versus permanent care?
- Who determines whether my need for care is temporary or permanent?
- What is the process for surrendering an independent living unit? If I am unable to decide, who makes that decision on my behalf?
Community-specific information at your fingertips
My LifeSite provides detailed information on CCRCs nationwide to help with this research. Get started now!