Of the many senior-housing options, CCRCs are among the most expensive and least subsidized. Medicare and long-term health insurance do not pay for the independent residential living costs of a CCRC that include housing, meals or non-skilled nursing care. Limited amounts of skilled nursing care or other types of healthcare may be covered under Medicare or by private insurance. However, given the high cost of CCRC living, it's highly unlikely that anyone living in a CCRC would meet the income guidelines required to qualify for Medicaid.
Residence in CCRCs is paid for out-of-pocket. Most CCRCs ask for an entry fee plus a monthly fee based on the type of care for which the resident contracts. Entry fees in most parts of the country range from $40,000 to $90,000 or more for a single occupancy studio apartment and in the $200,000 to $300,000 range for a two bedroom cottage. Monthly fees range from $1,500 to $5,000 (or higher in the most expensive parts of the country). Again, given the huge financial outlay, it would be wise to involve an attorney and an accountant to represent your loved one's interests before signing any type of legal agreement with a CCRC.
The CCRC model, as it is today, is clearly a living option only for affluent seniors and should be considered only if the prospective resident is absolutely certain that this is an affordable expense. Even elderly persons can be evicted for non-payment of rent or cooperative maintenance fees! Still, many experts in senior housing and healthcare feel that the exclusivity of the CCRC will disappear within the foreseeable future when senior consumers with more moderate incomes begin to demand similar options. Meanwhile, for many seniors who have saved well for their retirements, CCRCs offer an appealing solution to concerns about aging in place, preserving independence and living life to its fullest.
Developed by, and made available with the permission of John J. Connolly, Ed.D., President and CEO of Castle Connolly Medical Ltd. "America's trusted source for information on top doctors and quality healthcare."