Moving to a senior living community, in particular a Continuing Care Retirement Community where you have access to services as you need them, involves making lots of decisions, some of the most complex of which are financial.
You will hear the terms ‘contracts or agreements’ and ‘fees’ and these will vary between communities because they are not all financially structured the same way.
This can make comparing communities a bit complicated. It may help to use a tool like this Cost of Living Comparison Worksheet to evaluate the expenses against your own.
According to independent health services accreditor CARF International, the most common types of CCRC agreements are:
Type A (Extensive or Life Care)
This type of agreement includes housing, residential services and amenities and access to healthcare services without substantial increases in your fees. While the Entrance Fee and Monthly Fees may be higher than some of the other contract options, your increased need for services will not result in unpredictable added fees.
This structure essentially allows for the pre-payment of future services so monthly fees typically see little or no increase except to cover normal operating costs and inflation adjustments.
Type B (Modified)
Typically these Entrance Fees and Monthly Fees will be lower than those of Type A. Also offering housing, residential services and amenities- the structure for payment of future healthcare costs is handled a bit differently.
These contracts allow for access to healthcare services (such as Assisted Living and Skilled Nursing) for a stated period of time without a substantial increase in monthly fees. For more extended services there may be discounted rates offered in comparison to facilities in the area, but a resident will expect to see an overall increase in their monthly fee.
Type C (Fee-for-Service)
Generally assumed to have the lowest Entrance Fee and possibly monthly fees depending on the services you are accessing. While communities offering this type of contract will likely include housing, residential services and amenities, the need for healthcare services will result in a change to your monthly fee. You will pay for the services you are utilizing as you need them.
Retirement communities offering a rental option forgo the collection of an Entrance Fee and generally offer month-to-month contracts. While you may have amenities and healthcare services offered, your access to them will likely be at market rates and will be based on availability. Increases in monthly fees can also be expected.
Some communities will offer one or more of the options above. Get specific details about the contract type of the facility you are interested in.
Monthly and Additional Fees
It is also important that you inquire about the administrative fees, health assessments and/or any other community fees that are required for residency in the community.
The monthly fee typically covers the community services, amenities and conveniences that you gain from the moment you move in. Ensure you get a complete list of all services and amenities included -- and not included -- so that you can prepare for expenses outside of the monthly fee.
Again, contracts and fees will vary for each CCRC so ensure you discuss all details with a community representative and even your financial advisor.
Moving to a community like Twin Towers Senior Living Community in Cincinnati can offer incredible value you may not have even realized. Call us at 513-853-2000 or contact us online with any of your questions.