Senior Spotlight: Core Considerations For Life Plan Communities (Part 2)

Last week we launched our introduction to the senior living option known as CCRCs and life plan communities. Now that our readers have an understanding of what they are and what they offer, we want share what to ask from a financial, contractual and quality control perspectives. 

Critical Considerations

Making a change into any senior living community is a daunting physical, financial and emotional task. CCRCs offer the added challenge of assessing if this community is a fit today – but also in the unpredictable years to come. Timing (how soon to move vs. how long to wait) and lifestyle fit are big decisions – that will likely require another blog in the future! 

Given the long-term intended nature of this housing type, senior industry experts assert that understanding the contracts available and knowing the financial standing of the institution are keys to considering any life plan community or CCRC. In short, there are extensive life care contracts (full range of services), modified contracts (limited services includes with add-ons available) and fee-for-service contracts (generally lower initial enrollment but higher individual service fees). Both AARP and Next Avenue offer insightful and helpful questions to ask when exploring the CCRC or life plan community model. 

The Medicare Question 

US News & World Report addresses a very important issue, that “Medicare and Medicaid don’t pay for independent living. Medicaid pays for assisted living under limited circumstances.” Yet Medicare does cover some services that a CCRC resident might receive outside of the community – such as hospitalizations and physician visits. The bottom line according to US News is that “Medicare is not part of the equation when talking about how to fund living in a CCRC. Most people who opt to reside in CCRCs are funding the stay out-of-pocket and have the personal financial resources to do so.” Always consider what are costs of living (housing) vs. true care and medical costs when setting expectations for what may be covered by insurance - or not.

Quality Assurance 

Did you know that some CCRCs have gone through an accreditation process conducted by the Commission on Accreditation of Rehabilitation Facilities (an international non-profit organization)? While not required by law, this process involves a consultative rather than inspective approach, and incorporates staff interviews, observations of organizational practices, document review and service suggestions. This oversight and accreditation can give peace of mind to prospective residents, but is only one aspect of assessing quality, integrity and fit. 

We hope this week’s topic has given you an informative introduction to this senior housing type, what to ask and what to expect. You and your loved ones deserve to feel empowered and informed when it comes to making one of the most important transitions in life. 

Take care, 

Bobbi

Bobbi Decker
DRE#00607999

Broker Associate
650.346.5352 cell
650.577.3127 efax
www.bobbidecker.com


NAR Instructor….“Designations Create Distinctions”
CIPS, SRS, ABR, CRS, SRES, GRI, CLHMS, REI, AHWD, RSPS, MSLG

Bobbi Decker & Associates fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. For more information, please visit: http://portal.hud.gov/