Don’t be misled about life care…
Today’s seniors have more options than ever before, but there is some confusion regarding the various types of senior communities that you may be researching.
A Continuing Care Retirement Community (CCRC) is defined as offering a “continuum of care” beginning with independent living and including assisted living and skilled nursing usually all in one location, if ever needed. It is critical to understand, however, that there are a number of contracts or residency agreements that can be offered at a CCRC – but only one provides the most extensive protection from the increasing costs of health care.
Contract Options as Defined by CARF-CCAC - the Only Accrediting Body for CCRCs
Type A (Extensive) Agreement Includes housing, residential services, amenities and unlimited, specific health-related services with little or no substantial increase in monthly payments, except to cover normal operating costs and inflation adjustments.
Type B
(Modified) Agreement Includes housing, residential services and amenities and a specific amount of health care with no substantial increase in monthly payments, except to cover normal operating costs and inflation adjustments. After the specified amount of health care is used, persons served pay either a discounted rate or the full per diem rates for required health care services.
Type C
(Fee-for-service) Agreement Includes housing, residential services and amenities for the fees stated in the resident agreement. Access to health care services is guaranteed, but it may be required at full fee-for-service rates.
Rental
Agreement Allows residents the opportunity to rent housing, but does not guarantee access to health care services, which are paid on a fee-for-service basis.
Benefits of a Type A Extensive Life Care Agreement
The Type A Life Care agreement offers the greatest protection from soaring health care costs. The up front entrance fee acts as your insurance plan against the high cost of future care. Some of the benefits of the Life Care Program offered by the largest developer, owner/operator of CCRCs in the U.S., ACTS Retirement-Life Communities, include:
• The ability to remain independent in your private apartment home, come and go as you please, and not be burdened by home maintenance. Enjoy the fun activities, restaurant-style dining, social events, fitness center, pool (when available), daily transportation, and more!
• The assurance you will never need to burden a family member for either physical or financial help. What a relief that you can have an independent and active lifestyle, while always knowing that if a crisis strikes, assisted living and skilled care are available. Plus, you know how it will be paid for and where that care will take place.
• After saving for your retirement, you don’t want to risk outliving your money. So many seniors and their families have been impacted by the soaring cost of long term care. Add to that the stress of finding a quality assisted living or nursing care setting with availability during a crisis. Plan ahead.
How to Tell the Difference
Unfortunately, not all communities are up front with the type of agreement they offer. Make sure you review the contract specifics closely – question the use of the words “Life Care” or “Care for Life,” since they are often used incorrectly. Ask the right questions:
1. How much will my fees increase each month if my spouse or I need a temporary stay in skilled nursing?
- At an ACTS community, this answer is “Zero”, but we’ve heard of some other communities charging up to $300 per day!
2. How much will my fees increase each month if my spouse or I need permanent assisted living or skilled care?
- At an ACTS community, this answer is “Zero.”
At other communities, you may be required to pay for a temporary stay in assisted living or skilled care in addition to your standard monthly fee. Or, if a spouse requires assisted living or skilled care these fees would be on top of what is being paid to maintain the independent accommodation.
Don’t be fooled by the offer of a refundable entrance fee. You shouldn’t be paying an entrance fee in the first place unless you get something in return, such as pre-paid life care! Ask the right questions, and demand honest, logical answers. For more information, visit www.ACTSretirement.org