What is the Difference Between a CCRC Entrance Fee and Monthly Fees? What Do the Monthly Fees Typically Include?
Understanding the financial structure of a Continuing Care Retirement Community (CCRC) is crucial for prospective residents and their families. The two primary components of CCRC pricing are the entrance fee and monthly fees, each serving distinct purposes.
The entrance fee is a one-time, upfront payment made upon moving into a CCRC. This fee essentially secures your residency and, more importantly, your access to a continuum of care services—ranging from independent living to assisted living, skilled nursing, memory care, and often more—should your needs change over time. The size of the entrance fee can vary based on factors such as the type and size of the residence selected (e.g., apartment, cottage, villa), the specific CCRC's amenities and services, and the refundability option chosen. Some CCRCs offer partial or fully refundable entrance fees, which can impact the initial cost but provide a level of asset protection for residents or their estates. The contract type chosen directly impacts the level of the entrance fee, as some contracts provide more coverage for the resident’s long-term healthcare costs than others.
The entrance fee for what is known as Type A long-term care contracts allows you to pre-pay for future healthcare costs. Whereas moving from independent living to assisted living may increase your monthly fee by thousands of dollars with other contract types, the entrance fee of your Type A contract has already covered these costs, so your monthly fee does not increase solely based on any increased level of care needed.
Conversely, monthly fees are ongoing payments, similar to rent or homeowner association fees, that cover the day-to-day operational costs of the community and the services provided. These fees typically include a comprehensive array of benefits designed to simplify life for residents and promote well-being. Common inclusions are:
- Dining Services: Often includes a certain number of meals per day or a dining credit, with flexible options for various dining venues.
- Utilities: Usually encompasses all or most utilities such as electricity, heating, air conditioning, water, and trash removal.
- Maintenance and Housekeeping: Regular maintenance of residences and common areas, such as landscaping, snow removal, and sometimes even routine housekeeping services, are standard.
- Security: 24-hour security personnel and emergency call systems provide peace of mind.
- Transportation: Scheduled transportation for appointments, shopping, and outings is frequently offered.
- Activities and Wellness Programs: Access to a diverse calendar of social, educational, cultural, and fitness activities, as well as wellness centers and professional staff. Usually a pool and fitness center are included.
It's important to note that the specific inclusions can vary between CCRCs, so a thorough review of the resident agreement is always recommended.
It’s also worth noting that all of these services and amenities (and more) are available at any of the lovely CCRCs operated by Acts Retirement-Life Communities. Acts operates some of the most beloved and revered CCRCs in the country.
Related Resources: