So, What’s a CCRC Anyway?

A Nurse's Friendly Guide for Your Loved One's Long-Term Care

Well, I have spent the last month giving you the low down on all the different kinds of communities and breaking down the pluses and minuses.  Here is one type that, as they say, is the “whole kit and kaboodle.” So, what is a CCRC, and is it the right choice for your loved one?

Let’s break it down together!

What is a CCRC?

A Continuing Care Retirement Community (CCRC) is like the Swiss Army knife of long-term care options. It’s an all-in-one community designed to meet the evolving needs of seniors over time. Think of it as a place where your loved one can move in, and then stay—even if their health changes.

Here’s how it works:

Independent Living: They start out in their own little apartment or cottage, living pretty independently.

Assisted Living: If they need more help as they age (think of help with bathing, dressing, etc.), they can transition to assisted living, all in the same community. 

Skilled Nursing or Memory Care: If they need round-the-clock care due to serious health concerns or dementia, the community has nursing staff and specialized care units on-site.

So, essentially, your loved one can stay in the same community even as their needs change (however, usually not in the same apartment/cottage/building.  However, no more major stressful moves down the line!

How Does the Buy-In System Work?

Here’s where things get interesting. Most CCRCs require an upfront buy-in or entrance fee. This can range anywhere from $100,000 to over $1 million (yes, you read that right). The cost depends on the community’s amenities, location, and the size of your loved one’s home.

Now, I know that sounds like a lot (and it is!), but it’s not just money disappearing into thin air. The buy-in typically guarantees access to care for life. It’s like investing in peace of mind—you’re paying for future care if and when your loved one needs it. Some communities will even offer a refund or partial refund of the buy-in after your loved one passes away, which can then be given back to their estate.

What Happens to the Buy-In After Death?

This varies by CCRC, but generally speaking, there are three types of contracts:

1. Type A (Lifecare): The buy-in covers all levels of care (independent, assisted, skilled nursing) at the same monthly rate, even if care needs increase. After death, a small portion of the deposit is usually refunded (sometimes 50-90%).

2. Type B (Modified): The buy-in provides some discount on future care, but if more intensive care is needed, the monthly fees may increase. The refund after death could vary depending on how much care was used.

3. Type C (Fee-for-Service): There’s a lower upfront cost, but as your loved one’s care needs grow, the costs go up. Refunds after death? Not usually.
Make sure you ask the community about refund policies before signing on the dotted line so you know exactly what to expect!!

What Can You Expect Day-to-Day?

Here’s what we love! CCRCs are often designed to feel like little villages or resorts, complete with dining options, fitness centers, swimming pools, group activities, and even things like beauty salons or art studios. Your loved one can enjoy their hobbies, meet new people, and even pick up new skills (pottery, anyone?).

The Good Stuff:

Continuity of care: Your loved one can age in place.
Social engagement: It’s easy to make friends and stay active.

Peace of mind: No need to scramble for new care options as health needs change.

Top-notch amenities: It can feel like living in a resort!

The Not-So-Good:

Cost: The buy-in and monthly fees can be high.

Complex contracts: You’ll want to read the fine print closely (or have a lawyer help!).

Refunds may vary: Be sure to clarify what happens to the deposit.

Any Surprises?

A couple of things I’ve noticed surprise people:

1. Increased monthly fees: Most CCRCs charge a monthly fee on top of the buy-in, which can range from $2,500 to $5,000 or quite a bit more in some areas. These fees can increase annually, depending on inflation and care needs.

2. Waiting lists: Some of the more popular CCRCs have long waiting lists, so if your loved one is thinking about making the move, it might be worth getting on the list sooner rather than later—even if they’re still independent for now.

3. Healthcare on-site doesn’t mean instant service: While CCRCs have healthcare options available, it’s still a good idea to ask about their nurse-to-resident ratios and how quickly they can respond to emergencies.

Wrapping It Up

Choosing a CCRC can be a fantastic option for your loved one, especially if they’re looking for a place where they can stay, no matter how their health changes. It’s all about understanding the costs, contracts, and what your loved one needs now—and in the future.

If you ever want to talk more about CCRCs or have any questions, feel free to reach out! I’m always here to help. And make sure to download our long-term care options compared cheatsheet that summarizes all the long-term care options. 😊

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