Cost Essentials of Continuing Care Retirement Communities
Continuing Care Retirement Communities (CCRC) offer multiple levels of active retirement and health care options – retirement living (independent living), personal care, and skilled nursing on the same campus. How the cost of health care is covered depends on the plan offered. Upon moving into a CCRC, residents select one of these plans:
Type A – Lifecare
Under a Lifecare contract, offered at Masonic Village at Sewickley, residents pay an upfront entrance fee and an ongoing monthly fee that bundles most of the cost for day-to-day living. Residents who transfer from retirement living to health care pay essentially the same monthly fee in place at time of transfer. Most communities will adjust the monthly fee for the additional meals provided in personal care and skilled nursing.
- Entrance fees are higher because you’re covering a full range of future possible health challenges.
- The monthly fee remains virtually the same if your health needs increase.
- Most residents qualify for tax advantages.
- Preferred by residents looking for cost certainty and financial protection of their savings/assets.
Type C – Fee for Service
Under a fee for service contract, residents pay an upfront entrance fee and an ongoing monthly fee that bundles most of the cost for day-to-day living. Entry fees and monthly fees are lower upon entry into active retirement living, but residents pay the full cost of personal care or skilled nursing for as long as needed at market rates.
- The entrance fee allows the community to charge a lower monthly fee than Lifecare communities.
- This plan does not provide for tax write-off since heath care services are not pre-funded.
- Savings and assets are potentially depleted paying for health care.
Some CCRCs offer a rental option without an entrance fee requirement. Residents who choose this type of contract pay a higher monthly fee and assume the full risk of the cost and self-coordination of their future care.
Visit our cost page for more information on retirement living fees.