New Pond Village

What is a CCRC? What defines a Lifecare community? Is there a difference? In this article, you will learn about the available contract types at CCRCs so you can make an educated decision about thetype of community thats best for you. CCRCsalso referred to as continuing care retirement communities or Life Plan communitiesoffer a secure pathway for aging and future healthcare needs and eliminate the need for a disruptive move if you ever need a higher level of care. Residents typically enter these communities as independent living residents and enjoy access to continuing on-site healthcare, including assisted living and memory care, should the need for such services arise.There are three types of care contracts available at CCRCs (Type A, Type B and Type C), all offering different levels of care coverage.1.     Type A Contract: LifecareType A Lifecare contracts include coverage of all potential care costs as part of the initial contract, which includes housing, services, and amenities.  All Lifecare communities are CCRCs, but not all CCRCs offer a Lifecare contract.  A Lifecare contract requires an entrance fee but ensures predictable monthly fees regardless of your care needs. Plus, couples with a Lifecare contract can occupy two residences on the same campus but only pay one monthly fee.Those who opt for Lifecare know they can count on high-quality care available at predictable rates for the rest of their lives. Generally, Lifecare residents pay far less for these services than they would on the open market as part of a smartfinancial plan to protect themselves and their estate from the ever-increasing costs of long-term care.2.     Type B Contract: Modified CareType B Modified Care Contracts offer lower upfront deposits and monthly fees but also have limitations on covered long-term care services. Healthcare is typically provided in one of two ways:         1.     A limited number of free days included as part of the entrance fee, with additional care billed at per diem market rates        2.     An ongoing, minimally discounted rate Healthcare services may be delivered on or off site, and two monthly fees may be incurred if couples require different levels of care.   3.     Type C Contract: Fee-for-Service Care       With a Type C Fee-for-Service Contract, access to long-term care, while typically guaranteed, is charged at market rates. If a resident requires care on a short-term basis, to maintain their independent living residence,      that resident would be required to pay the monthly fee on the independent living residence plus the costs of housing and healthcare received in assisted living, memory care or skilled nursing. While theres no upfront expense under this plan, the market costs of care can rapidly exceed the amount of an upfront entrance fee without the benefits of pre-arranged long-term care costs.Making a DecisionSo which CCRC contract is the best? Theres no one right answer for everyone. It comes down to making the decision that youre comfortable with after considering things like your family history regarding life expectancy and health in addition to knowledge about the different types of CCRCs. ContributingWriter Adam Manchester, Executive Director, New Pond Village amanchester@benchmarkquality.com 508-660-1555