Continuing care retirement communities (CCRC) are communities that are designed to care for seniors from retirement through the end of life. This type of care can also be known as aging in place or “lifecare”. (Source: U.S. News & World Report)
It differs from assisted living in that at a continuing care retirement community a senior can stay there as their needs increase. If they are in an assisted living facility, they may need to move to another facility as their care needs increase.
A continuing care retirement community may have individual apartments or houses, an independent living facility, an assisted living facility and a nursing facility. This means that seniors may not need to worry about moving or finding new care as they age and the level of care they need increases. Depending on a person’s needs they move from one location on ‘campus’ to another. Care can range from none to 24-hour nursing care, providing medical and personal care needs. Meals, recreation activities and housekeeping may also be provided depending on the location on “campus”. A major advantage of CCRCs is forming and keeping a community over time.
Those interested in CCRCs can consider moving into one typically any time after age 65 but will need to be able to move and live independently when they do. (Source: U.S. News & World Report)
How is a Continuing Care Retirement Community paid for?
Pay for a continuing care retirement community is private. Typically, a person pays an initial amount and then a monthly fee.
Understanding the Continuing Care Retirement Community Business Model
It is important to understand the business model of a potential CCRC. Traditionally, CCRCs were run as nonprofit organizations, though today some continuing care retirement communities are run by for-profit institutions. This distinction is important because if a CCRC is for-profit, you’ll want to understand how a potential sale of the business would affect you and your contract.
For example, if the CCRC is sold to a new owner, that could potentially negate resident contracts or result in a renegotiation of the terms of contracts already in place.
As with any contract, read the fine print and ensure you understand what you’re agreeing to. You may want to involve an attorney and/or a financial planner in determining whether you’re getting a good deal and to make sure any contract you or a loved one signs is solid. Buyer beware and do your homework. Kiplinger has an article that shares more information on shopping for a continuing care retirement community.
Some CCRCs have clauses in their contracts regarding whether or not you can get your money back if you decide it’s not the right fit after all. Some will provide a full refund up to a few months after moving in; others have stricter limits. This is why it’s so important to read everything.
What to Consider When Selecting a Continuing Care Retirement Community
ns to consider before committing to a Continuing Care Retirement Community contract.
- What is the CCRC’s background and experience? Find out if they are sponsored by a nonprofit group or church and if that sponsor really has any legal control or financial responsibility over the CCRC.
- Are all levels of care licensed or certified by the state and accredited by a recognized standard of care private accrediting organization?
- What is the staff makeup at the CCRC and are they accredited?
- What are all the fees that CCRC collects and how much are they? Ask about entrance fees, monthly fees, and how those fees may change based on marital status or level of care.
- In those fees, what services are included and what services are excluded or come with an extra charge?
- Can accommodations change if they do not fit expectations or needs? And can they be decorated to feel like home?
- What kind of safety measures – like a fire emergency plan – are in place and how does the staff manage emergencies?
- What is the assessment and intake process for the facility and who performs the assessment?
- Can a person choose their own doctor and manage their own care plan?
- Who decides if and when a person needs more care?
- Who pays for healthcare? Medicare, Medicaid, private insurance?
- What happens if an injury happens at the facility?
- What rights do residents have to participate in facility management and codes of conduct?
- What are the rules of conduct and operating rules for the CCRC and what happens if a rule is broken?
- What are the grounds for eviction and is there a right to appeal?
The above questions are adapted from The American Bar Association Legal Guide by Charles P. Sabatino, et al., Times Books, Copyright © 1998 by the American Bar Association. The book contains many more detailed questions that you can ask CCRC’s while planning your care outside the home.
Other Alternatives to In-Home Care
There are other care facility options to consider as well:
