Continuing Care Retirement Communities Tips

Retirees who are seeking a living environment that is secure, comfortable, and attractive, that will continue to meet their needs as they grow older, are finding more and more options available to them. Very popular are continuing care retirement communities (CCRCs), which are becoming more common throughout the United States and in some countries overseas.

CCRCs are self-contained communities that offer a range of living options, from houses and townhouses in which seniors live completely independently, to areas providing assisted living and yet other areas providing skilled nursing care. Typically, a senior moving into a CCRC must be in reasonably good health, and is expected, at first, to live independently. As the resident's needs change over the years, he or she would then move to other areas of the CCRC that offer more care as necessary. Because these services are all typically included in the original contract, the senior or family members are not faced with sudden decisions during a health emergency; the CCRC will make adjustments to the resident's living situation and automatically provide the needed care. And because the costs are all agreed to beforehand, there are no sudden financial crises either.

CCRCs are generally designed as campus-like environments, with a community center and various other amenities on-site, such as exercise equipment, hair salons, cafeterias, and hobby shops. Most routinely arrange programs and group activities, encouraging a sense of community. And most offer transportation to events and facilities in the surrounding community: concerts, sporting events, shopping, and more. There is no obligation on the part of residents to participate in any of these activities, but the option is always there.

On moving into a CCRC, there is always a contract that outlines payment terms and services offered. Usually, a new resident must pay an entrance fee in a lump sum, which guarantees lifetime housing and specified services, plus ongoing monthly payments. In some CCRCs, the resident may actually purchase a condominium or cooperative unit via an equity agreement; there are still monthly fees involved, and the fee structure may change should the resident need to move from the condo into an assisted living facility. And some contracts are fee-for-service only.

These fees can vary considerably. Entrance fees can start as low as $20,000 for rental units, while buy-in fees can cost $500,000 or more. Monthly fees can range from $500 to $3,000, depending on the contract. Medicare and Medicaid will cover some nursing and medical care at certified facilities, as will any private insurance or long-term care insurance that you already have. Be sure to discuss all of these options when you are considering a CCRC; the sales staff can help you sort through your payment options, and may require that you enroll in Medicare, or apply for Medicaid in the event that you run through your own resources.

Many CCRCs seek accreditation through the Continuing Care Accreditation Commission (CARF), an independent organization that is internationally recognized. CARF encourages health and human services facilities to improve their standards; CARF accreditation is not a one-time "seal of approval," but an ongoing process. CARF establishes long-term relations with the facilities that it approves, and CCRCs that have been thus accredited are generally more reliable, and maintain higher standards, than those that have not.