What are the costs of a CCRC?
Upon moving into a CCRC, residents pay a refundable entrance fee usually somewhere between $200,000 and $300,000. This is called "buying in." This entrance fee covers some of the additional costs associated with higher care levels.
In addition to the entrance fee, a monthly fee is required. This monthly fee is sometimes called "rent." When care levels increase, the monthly fee increases. Monthly fees can also increase annually because of inflation; most communities limit the annual increase to no more than 10%.
If an elder wants to live in assisted living without "buying in" to the CCRC, they can certainly do this. Monthly fees are higher for those who are not a part of the CCRC.
Do Medicaid and/or insurance cover the costs of living in a CCRC?
Residents living in a CCRC pay privately when living independently or when in assisted living. There is an exception to this; some states offer a waiver for low-income seniors in assisted living.
Medicaid and insurance will pay under certain circumstances. If an elder needs rehabilitation, Medicare will pay a percentage of the cost. When a resident moves into skilled nursing, the CCRC conducts a financial review. This means that the community reviews the resident's finances to decide when to apply for Medicaid. When the resident runs out of money, Medicaid will pay for the cost of long-term nursing care.
Donna Phillips is vice president of member and network services of the National Council on Aging. She is a nationally known expert in the work/life field and serves on the National Board of Directors of the Alliance of Work/Life Professionals.