Continuing Care Communities and Affordability – What You Need to Know

So you’ve done your research and discovered all the wonderful reasons to choose a Continuing Care Retirement Community (CCRC) or Lifecare Community. Healthcare needs are covered for assisted living, memory care and nursing home; and social isolation ends the moment you walk through the door. Life becomes easier by leaps and strides by eliminating home ownership hassles and adding amenities like cleaning, meals, fitness and intellectual programming.

A common misconception about CCRCs is that they are just too expensive.  Often, people are not aware that there are a variety of contract types available to make entrance flexible, keep monthly costs predictable and protect assets from inflated assisted living and nursing home costs later in life.

Here are a few things to consider when calculating the costs for these communities:

  • The entrance fee – This is a one-time cost that most people fund with a portion of the sale of their home.  This varies depending on the size of the space in the community and the value of the contract type. While all communities and contracts are different, up to 90% of this fee can be refunded to you or your estate if you move out, or pass away.  A portion of this fee is tax deductible for the year you entered the community as a prepaid medical expense.
  • Monthly service fees – These are the monthly recurring costs that replace the expense of owning a home.  This includes everything except phone, internet and cable providers.  Here you’ve got the amenities such as snow removal, gym membership and daily meals to list just a few.  A portion here is also tax deductible annually as a prepaid medical expense.
  • Assisted Living, Memory Care and Nursing Home – As your needs for care increase, the monthly costs follow in line.  This is standard to the industry and you’ll find the same at any CCRC.  The difference here is that the rates for these levels of care are discounted from the moment you move in.

Another consideration is the contract type.  While this topic is easily a new blog post, remember, there are innovative contracts available allowing use of the entrance fee to fund the difference in monthly cost as care needs increase.  Do your research to find the one that fits your financial situation and wishes for future healthcare.

Keeping healthcare costs predictable is one of the most effective ways to protect your hard earned assets for future generations.   While every community and contract is different, there are plenty of options and you could be surprised to learn that a CCRC is a perfect fit for your future.

A packet of information will help you begin the journey with Birch Hill