Continuing Care Retirement Communities generally offer a variety of housing, from apartments to nursing home beds, on one campus. Residents can move to different types of housing as their needs change.
The management contracts with residents to provide housing and ncecessary services, possibly for the rest of the person's life. In return, residents pay a substantial one-time entrance fee, plus a monthly fee or rent. If you become disabled, your changing need for care and services can be met without having to move off campus. However, facilities typically retain the right to terminate a resident's contract.
Information about the kinds of services that will be available to you and provisions for future nursing home care are included in the Continuing Care Retirement Community contract.
Some continuing care facilities have gone into bankruptcy because of inadequate financial planning or failure to attract enough residents. A facility's failure could leave residents not only without housing and support care, but also without money.
When checking a continuing care facility, ask for copies of its contract and audited financial statement. Good facilities will gladly provide these documents. Before making a final decision, consult your attorney about the contract and your banker about the financial statement.
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Entrance Fees
Entrance fees vary from facility to facility. Like monthly fees, entrance fees depend on the level of services a facility offers and the type of housing provided. There should be provisions for at least a partial refund if the resident moves out within a specified time period.
Monthly Fees
Monthly fees may be set at a fixed amount regardless of the level of services required. However, monthly fees more often change with the level of services a resident needs.
Services
Monthly fees cover utilities, general services such as cleaning, activity areas for hobbies or gatherings, and social/spiritual activities. The monthly fee may also cover one or more daily meals depending on the facility and residents' needs.
In some cases, monthly fees cover emergency nursing and temporary visits to health care facilities. The allowable length of such visits depends on the facility.
Other services may be provided at additional cost. These include health clinic services, a variety of other health care services, beauty or barber shop visits, or parking garage use. Extra services available vary in each facility.
Regulation
The regulation of Continuing Care Retirement Communities varies by state. Check with your state's Division of Aging Services to find out which agency regulates Continuing Care facilities in your state.
From: Continuing Care Retirement Communities, by John Merrill, Professor, Department of Environment, Textiles and Design, University of Wisconsin-Madison and Housing Specialist, University of Wisconsin Extension. Adpated by: Sarah D. Kirby, Associate Professor and Housing Specialist, North Carolina Cooperative Extension, North Carolina State University.
