Different Pricing Models For LTCC's

Posted on

Nov 22, 2021

Share This
For more information on the author, CarePatrol, CLICK HERE!
Senior care communities come in a variety of different shapes, sizes, styles, and pricing models that can be broken down into two main types - rental and entry fee. Within each of those are a variety of contracts, price points, plans, and amenities. There are significant differences between different regions of the country with some areas being far more expensive than others. With our experience being in the Mid-Atlantic region of DE-MD-PA, that is where we will draw our information from.

Rental Communities
Financially, rental communities operate very much like any other rental property. Most communities require a Community Fee when you first move in (names may vary). The fee, normally non-refundable, could be anything from $0 to a months rent & care or even more. You are typically signing a month to month lease and can leave at any time with 30 days notice. LTCC pricing varies widely and within each community, the monthly cost can vary based on care and assistance needs. These are critically important questions to ask and understand as you go through you information gathering process. What happens if (when) your care needs change is another important question.
While it is impossible to provide specific monthly pricing, the ranges listed here are accurate in our region. Prices in your area may well vary.
Independent Living Rental Communities

$2500 (studio) up to $6500 (2 BR apartment)
2nd person fee: $500 - $1500
A la carte services (laundry, med management) may be available for small additional fees

Assisted Living Rental Communities

$3500 for a studio up to $7500 (2 BR apartment)
2nd person fee: $700 - $2000.
Level of Care and Medication Management charges can add $10 to $80per day
A couple with high care needs can be over $10k

Memory Care Rental Communities

$4500 (shared studio) to $9000 for a private studio
Care needs & med management are often, but not always, included in the price


Entrance Fee Communities
CCRC's and LPC's
Continuing Care Retirement Communities, or CCRCs, provide the ultimate aging in place model. On one campus, you will find IL, AL, MC, and SNF but you must enter as independent - they usually will not accept someone that immediately needs higher care levels unless there is a spouse who is independent and is either capable of being the caregiver or is willing to bring in caregiver help. If there is any question, look into it. Each individual situation will be assessed by the community and they will either accept you or they will not.
You may have heard the term 'Life Plan' Community over the past few years. That was a focus group chosen name to replace CCRC but there is no difference in how the communities operate.
Entrance fee communities have much larger initial fees than rental communities, normally hundreds of thousands of dollars. Two factors mitigate that large outlay of an outlay: 1) you may get some portion of that back (how much varies) when you vacate, and; 2) your monthly fee will be lower - sometimes much lower - than rental communities.
As you might imagine, a big draw to the CCRC model is that you are guaranteed the level of care you need to stay in the community; to age in place. However, the monthly cost does escalate with your care needs but it will remain lower than a rental community cost for the same level of care.

'Life Plan' vs 'Life Care' Community
These terms, obviously similar and easily confused, actually refer to the different contracts communities offer. While costs in a CCRC/LPC increase with your care needs, your costs in a Life Care Community (LCC) do not - they are fixed from Day 1.
What's the catch, you may ask? Good question. The reason for this is simple: your monthly cost will be higher from the start, perhaps much higher. You are essentially pre-paying for your future care. Is it a good deal? Another good question. It is, in effect, an insurance policy on your future health care needs that allows you to calculate lifetime costs more easily since the monthly costs are fixed. If you end up in AL, MC or the SNF for an extended period, the cost of the Life Care Community will be much lower than the escalating cost of those care levels in a CCRC. Conversely, if you stay independent for a long time, perhaps never even entering AL or the SNF, the CCRC (LPN) will be much lower.
Entry fees are often at least partially refundable when you leave the community, including as part of your estate should you pass away while a resident. The residual usually drops (depreciates) at a set rate over a fixed period of time (i.e. 0.5% or 1% per month), leaving a guaranteed minimum residual anywhere from 0% and 90%. There are a virtually limitless number of financial arrangements and many communities offer choices of different plans (i.e. pay a higher entry fee and be guaranteed a higher residual). These are very important questions to ask.

Rental Fee vs Entry Fee - Which Is Better?
This answer - as you may have guessed - is neither. The different pricing models are designed to fit the needs of individual potential residents so while rental model works better for some, the entrance fee model will work better for others. Contrary to what you might think, entrance fee communities are not just for the wealthy. In fact, they often prove to be a great option even for someone who has been middle class their whole life but owns a home and has some savings.
Running long term cost projections is the only way to truly compare the costs. That analysis should also factor in other subjective what ifs so different scenarios should be envisioned. It may also involve consultation with a financial planner who can do detailed projections. This is a hugely important decision -take the time to do your homework and make sure it gets done right.

Other Articles You May Like

Caregiver Tips

Our Tips to Excel at Caring for a Loved OneBeing a caregiver means offering compassionate care for someone who needs it, whether due to aging, illness or disability. Family caregivers play a vital role in keeping their loved ones safe and healthy, but the job often goes beyond that. They're also companions who offer a friendly listening ear when needed and a reassuring presence when making important decisions. BrightStar Care aims to appreciate and support caregivers all year long. If you are a caregiver or know someone who is, be sure to check out our tips for high-quality care and avoiding caregiver burnout.Questions Every Caregiver Should Ask Over 40 million people(Opens in a new window) in the United States provided unpaid care to someone in the last 12 months. This statistic shows the massive need for caregivers in our country. However, new family caregivers often don't know where to start when they begin caring for a loved one. Below, you'll find several questions to get you started as a compassionate caregiver.Ask About Support Systems and ResourcesFirst, you'll want to pin down details about your loved one's support system. Ask these questions of yourself and your loved one:Will you be the only one providing care for your loved one?If anyone, who will be helping you? Do you have these individuals' names, addresses and emergency phone numbers?Do other family members or friends live nearby? Will they be helping you provide care? Does your loved one spend any time with them?Does your loved one receive financial, personal or medical assistance? Is this assistance temporary or permanent?Does your loved one have adequate insurance? What services aren't covered?Does your loved one have a will or trust? Could you locate these documents if needed?Who are their medical providers? When are your loved ones appointments? Who will be providing care? When will they be providing it? Who will be managing a schedule of who will be providing care when? What is your loved ones monthly budget? What insurance or government programs are supporting them? Understanding a Day in Their LifeNext, consider your loved one's current routines and standard of living. Think about these questions to get a good idea of their daily needs:How does your loved one get around? Do they use assistive devices like canes, stability bars or walkers? How often are they used, and for what types of activities?What activities make up their daily routine? Which are more difficult? Activities might include climbing stairs, bathing, cooking, cleaning, etc.Does your loved one leave their home? If so, when and why? (i.e., to visit a senior center, socializing, church)What organizations or faith-based groups does your loved one belong to? Write down associated names, addresses and phone numbers.What are your loved one's hobbies? What do they like to watch, read and do?Does your loved one have special dietary needs(Opens in a new window)? Can they accommodate these needs alone? Do they need assistance with shopping or cooking?Does your loved one have pets? Are they still able to care for these pets?What medications does your loved one take? Note all medications, dosage and when they should be taken.Does your loved one have trouble taking medications? How so?Consider Their Everyday Surroundings Finally, it's time to think about what day-to-day life looks like for your loved one and what kind of environment they live in. Ask the following questions to get a clear picture of their surroundings:Where does your loved one live? Do they have a house, apartment or condo? Is their environment urban or rural?Is the size of their living quarters appropriate? Is their home too big, too small or just right?Are there any barriers(Opens in a new window) (i.e., stairs, rough walkways, heavy doors) that make living in their home difficult? How can these barriers be removed?Are your loved one's living quarters secure? Are they at risk for unwelcome visitors like solicitors or scammers?How far does your loved one live from neighbors?Does your loved one need transportation to the grocery store, church, social events, etc.? Seek Resources to Provide the Best Care Caregiving truly takes a village. Once you have a clear understanding of your loved one's support system and daily life, seek resources to fill the gaps in your knowledge. Having places to look for reliable information goes a long way to alleviating a family caregiver's burden. Try these resources to help you provide exceptional care:Eldercare Locator:(Opens in a new window) This locator offered by the U.S. Administration on Aging is an easy way to find services for older adults.National Council on Aging:(Opens in a new window) NCOA is recognized as a national expert on aging and works to help older folks meet the challenges associated with getting older.National Association of Area Agencies on Aging:(Opens in a new window) This organization works with care agencies and assists them with building their capabilities.Family Caregiver Alliance:(Opens in a new window) The Family Caregiver Alliance is a nonprofit organization working to meet the needs of family members providing long-term care to their loved ones at home.Caregiver Action Network:(Opens in a new window) This organization aims to support caregivers and ensure they don't feel isolated and burnt out.National Alliance for Caregiving:(Opens in a new window) The National Alliance for Caregiving focuses on improving the lives of family caregivers. Their resources may help reduce caregiver stress.Access to Respite Care and Help:(Opens in a new window) Respite care is crucial for families across the U.S. This nonprofit promotes these services for family caregivers and their loved ones.American Association of Caregiving Youth:(Opens in a new window) This organization recognizes and supports children who care for ill, aging and disabled family members.U.S. Department of Veterans Affairs:(Opens in a new window) The Department of Veterans Affairs is dedicated to assisting people who have served in the military.Home Care Guide:(Opens in a new window) BrightStar Care is proud to offer numerous resources for those struggling with caregiver stress. This resource provides things to consider when looking for caregiving services for family members. Don't Forget to Take Care of Yourself! Caring for the caregiver is just as important as providing impeccable care to aging or ill individuals. But between work and caring for loved ones full-time, finding time for oneself can feel like an insurmountable challenge. If you're feeling stressed and burnt out, try our self-care tips:List Self-Care Activities You EnjoyThe first step to avoiding burnout is to figure out just what you'd like to do with your free time. Make a list of the activities that help you recharge after a stressful day. Write as many as you can think of, then pencil in time every day to do at least one. Here are some ideas for daily self-care:Take a short walk, stretch or do light exerciseCall a friend or family memberWatch your favorite TV show or read a bookTake a long shower or bath (bonus points for using aromatherapy!)Play with a petWrite in a journalHave a cup of tea or enjoy another favorite beverageTry a new recipeMeditate or praySet Achievable Goals for YourselfGoal setting is a great way to minimize caregiver burnout symptoms. What do you hope to achieve in the next week? What about in a month? Set achievable, measurable goals that don't raise your risk of guilt or negativity. Consider making self-care one of your goals. For example, you could say that you'll read for at least 15 minutes before bed or try one new recipe every week.Reward Yourself OftenYou've done an excellent job caring for your family member and deserve a reward! When you accomplish a goal, conquer a challenge or just make it through a tough day, be sure to reward yourself with something that brings you joy. Your reward could be something like the following:A massage, pedicure or facialA fancy cup of coffeeA night out with friendsYour favorite mealA day off workA new book or movieA day at the spa or hair salonPractice Self-CompassionBe kind to yourself! You spend most of your time having compassion for others, but it's essential to have the same understanding for your own feelings. Forget about being perfect and use mistakes as opportunities to grow and improve. Caregiving is challenging and known to cause stress and burnoutdon't make it harder for yourself with negative self-talk. Your best is enough!Get Plenty of SleepGetting enough sleep is easier said than done. However, we highly recommend making sleep a priority. If you have trouble falling asleep, try turning off your TV and phone at least an hour before bed. Make sure the room is cool, quiet and dark to promote restful sleep. If you're still struggling to get a good night's sleep, try incorporating breathing techniques or meditation into your bedtime routine.Focus on a Proper Diet Eating healthy is crucial for family caregivers. A proper diet will ensure you have enough energy to provide the best care possible. Introduce lots of whole grains, fruits and veggies to your diet, and minimize sugary drinks and processed foods. Don't forget to drink plenty of water throughout the day. We know stress eating is a tempting coping mechanism, but a healthy diet will make you feel so much better in the long run.Make Others Aware of Your NeedsMany people try to stuff their feelings down and deal with them alone. But no one will know you need help if you don't express your feelings! Don't be afraid to communicate your struggles and remember to reach out to your support system before hitting your breaking point. Simply having someone to vent to can reduce burnout.Join a Caregiver Support Group Sometimes, talking to friends and family members isn't enough. In that case, consider joining an in-person or online support group. These groups will connect you with professionals and other family caregivers who know what you're going through. Chatting with these people can be extremely therapeutic and give you new ideas for how to care for your loved one. You may also want to start meeting with a local therapist to talk through your feelings.Caregiver Fatigue and What Triggers It Caregiver fatigue,(Opens in a new window) also known as caregiver burnout, refers to the physical, emotional, and mental exhaustion experienced by those who provide care for someone else over an extended period of time. At first, caregivers might just feel physically tired. However, as caregiver burnout progresses, they may also begin to experience depression, feelings of helplessness, low self-esteem, sleep deprivation, and other personal health problems. Here are some triggers of burnout to watch out for: High Stress: Caregiving often involves managing multiple responsibilities, such as medical appointments, medications and personal care. Taken together, these tasks can lead to high levels of stress.Conflicting Demands: Today, many caregivers do double duty. They might provide care to an aging loved one while juggling work and caring for children. These conflicting demands only elevate stress as caregivers try to meet everyone's needs at the same time.Emotional Strain: Witnessing the decline or suffering of a loved one can take a significant emotional toll on caregivers, leading to feelings of sadness, frustration and helplessness.Lack of Self-Care: When stress levels are high and time is at a premium, it's easy to let self-care fall by the wayside. But the temporary relief of skipping self-care can lead to increased caregiver burnout down the line.Ambiguous Roles: In many cases, caregivers don't know exactly what their role is. They're dealing with unclear responsibilities, and constantly playing the guessing game can lead to high levels of fatigue.Lack of Support: Too often, caregivers feel unsupported by their families and communities. This is why one of our top caregiver tips is to join a support group. Talking with like-minded individuals can reduce some of the mental strain.Less Independence and Privacy: When you're always wrapped up in caring for other people, you may begin to feel a lack of autonomy and privacy. So much of your time is now dedicated to someone else, and you may no longer feel like your own person.Perceived Lack of Success: Caregivers often shame themselves for not "mastering" their responsibilities or failing to achieve their goals. This perceived lack of success only further heightens stress and fatigue.What to Do If You're Suffering From Caregiver BurnoutCaregiver burnout can be triggered by a combination of causes. The good news is that there is hope for alleviating burnout and fatigue. Here are our tips for family caregivers who are exhausted and disillusioned with their role:1. Recognize Symptoms First, it's important to recognize the symptoms of caregiver stress(Opens in a new window) in yourself. Seeing the signs in others is one thing but identifying them in yourself is easier said than done. Take a moment to reflect on your mindset and note any of the following symptoms:Constant feelings of worryPersistent fatigueChanges in sleep patternsleeping too much or not enoughFeelings of sadness or angerLoss of interest in hobbiesWeight fluctuationsFrequent headaches and other painsFailing to meet other family, work and social obligations2. Set BoundariesKnowing your own limitations can significantly reduce burnout. Once you understand there's only so much you can do, make sure your family members realize these limitations as well. Keep in mind that you will never be able to control someone else's thoughts and behavior and try to focus on the positive aspects of your role.3. Acknowledge the Stress and Physical Demands Caregiving takes a huge toll on mental health, but it also has lots of physical demands. Assisting with bathing, dressing and toileting takes physical strength, and these tasks are often much more demanding than people expect. Acknowledge the challenge and seek help from an experienced home care agency, such as BrightStar Care, whenever needed. We also recommend eating a healthy diet, exercising and getting enough sleep to cope with the physical demands.4. Be Realistic About Finances Providing care to a loved one can drastically impact your finances. You may feel responsible for purchasing equipment, supplies and even medical care itself. Be realistic about these financial challenges, and don't hesitate to enlist the help of a financial planning specialist. These professionals can help you find programs that assist with paying for care.  You have several options to explore when it comes to paying for in-home care.5. Communicate Your Feelings Honestly Feeling isolated is a common symptom of caregiver burnout. The best way to avoid such feelings of isolation is to communicate your needs to those around you. When you start getting overwhelmed, talk to someone right awaywhether that's a therapist, friend or family member. Try to avoid asking "why" questions about your situation, and instead ask what's in your power to change and how you can do it.6. Manage Relationship Stress Normal family relationships are often disrupted when an older relative needs care. Parent-child roles are reversed, as a parent now needs care from their children. After all, the parent suddenly needs help from their children. Know that you may have disagreements about how things are handled and be sure to approach these from a place of empathy. Focus on positive, uplifting experiences and keep lines of communication open to all concerned family members. Be prepared for a significant emotional impact on both yourself and your loved one. 7. Follow Our Self-Care TipsOur self-care tips for caregivers are instrumental in preventing burnout. Never skip a chance to take care of yourself! This can be as simple as a bath or as big a spa day. Make sure you're always investing time in yourself and your well-being.8. Ask for Help Before You Hit a Breaking Point Don't wait until the stress has you at a breaking point. Once you take up the role of caregiver, start looking for help right away. You might reach out to other local family members and see if they'd be willing to help you with certain tasks. Finding a trusted respite care provider can also help take some of the stress off your plate.Balancing Work, Family, and Caregiving Striking a balance between caregiving and your other responsibilities can feel like an impossible task. Thankfully, BrightStar Care is here to help you balance work, family and caring for an elderly or disabled loved one. Check out our ideas for mastering this crucial balancing act:Enlist Other Family Members or Close Family Friends: Do you have other family members living in the area? Do you have close family friends in the area? If so, reach out to them and coordinate ways they can help as well. Perhaps someone can fill your role on days you're unavailable.Talk to Your Employer: Communicating your situation with your employer is essential. They may be able to offer a hybrid work schedule or telecommuting(Opens in a new window) to accommodate your needs. In some cases, asking about the Family and Medical Leave Act can be beneficial. This law allows you to leave your job temporarily and applies to many employers. Be sure to talk to your boss or HR department about whether you're eligible for FMLA leave.Schedule Family Time: Set aside separate time(Opens in a new window) to catch up with your spouse and children away from the loved one you're caring for. While you can certainly have big family get-togethers, scheduling private time with your smaller family unit ensures everyone gets their own time.Set Priorities: It's always a good idea to have a list of priorities. Decide what is the most important and what can wait until you have more time. Remember that you may have to be flexible with your priorities, and what ranks number one this week may not the next.How BrightStar Care Can Help Caring for loved ones can be overwhelming and exhausting. Fortunately, BrightStar Care offers a range of home care services that can ease the burden for family caregivers and ensure that their loved ones receive top-notch care. From companionship and transportation to medical services and skilled nursing care, our team of friendly professionals is dedicated to providing exceptional care in the comfort of home. Find a BrightStar Care Location Near YouLooking for in-home care services or assisted living for your loved one or a reliable medical staffing partner for your organization? Our experienced local care team members are ready to help. Find a location near you, contact us online or call 866.618.7827 to speak with a local care expert and learn more about how BrightStar Care offers A Higher Standard.Sources:The Caregiver Foundation

Don't let investments take a vacation

Summertime is almost here and for many people that means its time to hit the road. But even if you decide to take a vacation, youll want other areas of your life to keep working especially your investments.            So, how can you prevent your investments, and your overall financial strategy, from going on vacation?  Here are a few suggestions:            Check your progress. You want your investments to be working hard for you, so youll need to check on their performance periodically but be careful about how you evaluate results. Dont compare your portfolios results against those of a market index, such as the S&P 500, which tracks the stock performance of 500 large U.S. companies listed on American stock exchanges. This comparison may not be particularly valid because your own portfolio ideally should include a range of investments, including U.S. and foreign stocks, corporate and government bonds, certificates of deposit (CDs) and other securities. So, instead of checking your progress against a market index, use benchmarks meaningful to your individual situation, such as whether your portfolio is showing enough growth potential based on a compounding rate of return to keep you moving toward a comfortable retirement and other long-term goals.            Invest with a purpose. When you work intensely at something, its usually because you have a definite result in mind. And this sense of purpose applies to investing, too. If you buy a stock here, and another one there, based on hot tips you might have seen on television or the internet, you may end up with a jumbled sort of portfolio that doesnt really reflect your needs. Instead, try to follow a long-term investment strategy based on your financial goals, risk tolerance, asset accumulation needs, liquidity and time horizon, always with an eye toward where you want to go in life how long you plan to work, what sort of retirement lifestyle you envision, and so on. Be strategic with your investments. Over the years, you will likely have a variety of competing financial goals and youll want your investment portfolio working to help achieve all of them. That means, though, that youll likely need to match certain investments with specific goals. For example, when you contribute to an IRA and a 401(k) or similar plan, youre putting away money for retirement. But if you want to help your children go to college or receive some other type of post-secondary education or training, you might want to save in a 529 education savings plan, which allows tax-free withdrawals for qualified education expenses. Or, if you want to save for a short-term goal, such as a wedding or a long vacation, you might choose an investment that offers significant protection of principal, so the money will be available when you need it. Ultimately, this type of goals-based investing can help ensure your portfolio is always working on your behalf, in the way you intended. When you take a vacation, you will hopefully be more relaxed and refreshed. But if you let your investments stop working as hard as they should, the results could be stressful. So, be diligent about your investment strategy, monitor it regularly and make those moves appropriate for your situation. By doing so, you cant necessarily guarantee a long day at the beach, but youll have a good chance of enjoying a sunny outlook.  Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL  34205941-462-2445chad.chaote@edwardjones.com This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Edward Jones, Member SIPC

New choices for business owners

If you own a business and you offer a 401(k) or similar retirement plan to your employees, youll want to stay current on the various changes affecting these types of accounts. And in 2024, you may find some interesting new developments to consider.These changes are part of the SECURE 2.0 Act, enacted at the end of 2022. And while some parts of the law went into effect in 2023 such as the new tax credit for employer contributions to start-up retirement plans with 100 or fewer employees  others were only enacted this year.            Here are some of these changes that may interest you: New starter 401(k)/403(b)  If you havent already established a retirement plan, you can now offer a starter 401(k) or safe harbor 403(b) plan to employees who meet age and service requirements. These plans have lower contribution limits ($6,000 per year, or $7,000 for those 50 or older) than a typical 401(k) or 403(b) and employers cant make matching or nonelective contributions. These plans are low-cost and easy to administer but the credit for employer contributions doesnt apply, as these contributions arent allowed, and since start-up costs are low, the tax credit for these costs will be correspondingly lower than theyd be for a full-scale 401(k) plan. Matches for student loan payments  Its not easy for young employees to save for retirement and pay back student loans. To help address this problem, Congress included a provision in Secure 2.0 that allows employers the option to provide matching contributions to employees retirement plans (401(k), 403(b), 457(b) and SIMPLE IRAs) when these employees make qualified student loan payments. Of course, if you offer this match for student loan payments, your costs will likely increase, although these matching contributions are tax deductible. In any case, you may want to balance any additional expense with the potential benefit of attracting and retaining employees, particularly those who have recently graduated from college. 401(k) eligibility for part-time employees  Part-time employees who are at least 21 years old and have at least 500 hours of service in three consecutive years must now be eligible to contribute to an existing 401(k) plan. The inclusion of part-time employees could lead to higher business expenses for you, depending on the amount of contributions you may make to employees plans. Again, though, youd be offering a benefit that could be attractive to quality part-time employees.             Emergency savings account  Many people, especially those who dont earn high incomes, have trouble building up emergency funds they can tap for unexpected costs, such as a major home or car repair or large medical expenses. Now, if you offer a 401(k), 403(b) or 457(b) plan, you can include a pension-linked emergency savings account (PLESA) that allows non-highly compensated employees to save up to $2,500, a figure that will be indexed for inflation in the future. PLESA allows for tax-free monthly withdrawals without incurring a 10% tax penalty. PLESA contributions are made on an after-tax (Roth) basis and must be matched at the same rate as other employee contributions.             You may want to consult with your tax and financial professionals to determine how these changes may affect what you want to do with your retirement plan. The more you know, the better your decisions likely will be. Chad Choate III, AAMS828 3rd Avenue WestBradenton, FL  34205941-462-2445Chad.choate@edwardjones.com