Have you ever looked into CCRC Contracts?

Posted by on Dec 31, 2014 in News | No Comments

Here’s a few things to consider when looking into continuing care retirement communities, also know as CCRCs.  The security of knowing you’ll be cared for throughout various stages of health and aging is an attractive option for many seniors, but typically involves a major investment of resources.  Before signing a contract with a CCRC, make sure you understand its terms and have the contract reviewed by a qualified attorney.

Types of CCRC Contracts

Life Care-Also called extensive care or Type A contracts:

Includes housing, residential services, amenities and unlimited use of health care services with no (or minimal) increase in fees.  A substantial entrance fee is usually required, but monthly payments do not increase.

Modified or Type B contracts:

Includes similar housing and residential services as Life Care, but health care services are limited.  Fees increase when a resident’s care needs exceed what’s included.

Fee-for-Service or Type C contracts:

Also includes housing and residential services and amenities similar to Life Care, but health care expenses are paid by the resident on an as-needed basis at market rates.

Rental or Type D contracts:

Less Common, this is a pay as you go option with no entrance fee.  The resident pays all health expenses, but access to the facility’s health care services is guaranteed.

 

Other Considerations

Fees:

If increases are allowed, how is this determined and to what extent are they capped?

Refunds:

Is any portions of the entrance fee refundable?

Deposits:

If a deposit is paid to secure a space under what circumstances will this be refunded?

Involuntary Transfers:

Can a facility force one spouse (who requires a higher level of care) to be separated from his/her spouse (and potentially face higher expenses).

Involuntary Discharges:

What are the facility’s policies if a resident can no longer cover their fees?

In summary, many seniors have found happy homes at CCRCs, but given the number of factors involved in a decision, the smartest buyers do their research and seek legal advice from an attorney before signing a residency contract.