| Continuing Care Retirement Communities (CCRC) are | | | | 12. Is you entrance fee 100% refundable upon |
| communities that offer a blend of services to meet | | | | death? |
| the needs of the elderly. The attraction of CCRCs is | | | | 13. Does your unit need to be sold before you are |
| the "one-stop shopping" they offer for many senior | | | | refunded your entrance fee? |
| living needs. Most CCRCs offer three components: | | | | 14. Is there any restriction on the sale of your unit? |
| 1. Independent living arrangements, which offer no | | | | 15. Is there any minimum sales price on your unit that |
| support services, although meals are seved in | | | | is required before you receive your entrance fee |
| common dining areas; | | | | refund? |
| 2. Assisted living facilities, with various levels of care | | | | 16. What percentage of your entrance fee is |
| and | | | | refundable? |
| 3. Skilled nursing home care, with various levels of | | | | 17. What are the restrictions on getting your |
| care. | | | | entrance fee refunded? |
| The one-stop shopping draw is attractive to seniors | | | | 18. Is your entrance fee held in an escrow account? |
| who are seeking lifetime care from one stage | | | | if not, be wary as this means your entrance fee may |
| (healthy) to another stage (conically ill) in the later | | | | be used to fund operating expenses. |
| part of their lives. CCRCs, in theory, take the worry | | | | 19. What happens to your entrance fee in the event |
| out of your final years for you and your immediate | | | | of a CCRC bankruptcy? |
| family. Prospective residents will tour impressive dining | | | | 20. What does the monthly maintenance fee cover? |
| facilities, peruse wonderful landscaping, be enticed by | | | | It should cover meals, transportation and various |
| the neat living facilities and exposed to abundant | | | | activities. Find out. |
| recreation facilities. You will, no doubt, walk away | | | | 21. Are there different levels of monthly maintenance |
| being dazzled. But a CCRC is a very expensive | | | | fees? If so, what are the coverage differences? |
| proposition, with high entrance fees ($100,000 - | | | | 22. Are there extra costs for moving you or your |
| $1,000,000), significant monthly maintenance fees and | | | | spouse to assisted living or nursing care? |
| numerous pay for service fees, with costs that often | | | | 23. If care needs increase are there additional costs? |
| rise over time. What was once affordable may | | | | 24. What happens if you cannot afford your monthly |
| become unaffordable in only a few short years. You | | | | maintenance fee? Are you evicted? Is thee a |
| have to be very cautious and review the contract | | | | benevolent fund available at the CCRC to help if you |
| carefully, preferably with an attorney who specializes | | | | run into financial difficulties and cannot meet your |
| in this type of contract law. | | | | monthly fee? If yes, review financials to ensure the |
| Questions that you need to ask: | | | | funds are adequate given the size of the CCRC. |
| 1. Is the CCRC accredited by the Continuing Care | | | | 25. What is the maximum monthly maintenance fee |
| Accreditation Commission (966-888-1122)? | | | | you can afford and is the CCRC monthly fee well |
| 2. What are the staffing levels? | | | | below that amount? |
| 3. What is the residence turnover? | | | | 26. Make sure the occupancy rate is 90% or more. |
| 4. Have there been recent fee increases? | | | | Occupancy rates below this could affect your future |
| 5. How much have the monthly maintenance fees | | | | fees. |
| increased on an annual percentage basis over the | | | | 27. What happens if the CCRC's occupancy rate |
| past five years? | | | | drops? How much will your monthly fee increase? |
| 6. How does the CCRC determine when it is time for | | | | Can you afford this increased fee? |
| a resident to move from one level of care to the | | | | 28. Are there any plans for expansion or future |
| next level of care? | | | | renovations? Are there adequate funds for this |
| 7. Ask current residents how they feel about the | | | | expansion or the renovations? |
| CCRC. | | | | 29. How long has the current management group |
| 8. Ask current residents what surprises they | | | | been operating the facility? |
| experienced in the operations of the CCRC. | | | | 30. Can the CCRC sustain deficits and for how much |
| 9. Is the CCRC financially solvent? Make sure you | | | | and for how long? |
| review the financials of a prospective CCRC for the | | | | Finding the right CCRC means asking the right |
| past three years with a CPA. | | | | questions. Do not go into a CCRC blind. You need |
| 10. Make sure you secure an attorney who | | | | competent professionals to help you ask the right |
| specializes in CCRC contract law. | | | | questions and evaluate the responses. The risk is |
| 11. What happens to your entrance fee when you | | | | simply too great to do otherwise. |
| pass away? | | | | |