Following the publishing of our recent blog article titled “Filial Responsibility Laws Underscore Importance of Long-Term Care Planning,” we’ve received a number of calls from readers who are interested in learning more about their housing and long-term care options as they age.
One of the solutions popular with many baby boomers who are making decisions for their long-term care is the “continuing care retirement community” (CCRC) model.
A CCRC is a residential alternative for older adults (usually age 65 and older) that provides flexible housing options, a coordinated system of services and amenities, and a continuum of care that addresses the different health and wellness needs of residents as they grow older. A primary focus of the CCRC model is to enable residents to avoid having to move multiple times as they experience a decline in their health status.
CCRCs generally require new residents to be in good health in exchange for a lifetime health care contract that provides them with unlimited long-term care at no additional cost beyond the initial entry fee (averaging $280,618 nationwide) and monthly service fees that average $3,000.
Many seniors use the proceeds from the sale of your family home as the initial investment in a CCRC. Some senior couples have used the proceeds from the sale of unwanted life insurance policies (life settlements) to assist with the entry fee into a CCRC.
According to Milliman Inc., an actuarial consulting firm, the ages of residents who enter CCRCs range from 65 to 95. In the last 20 years, average entry ages have increased from the mid-70s to the lower 80s, as reported by Milliman. While residents’ ages vary from community to community, today the average ages at entry fall in the 80 to 83 range.
All CCRCs offer at least three levels of care that include independent living, assisted living and round-the-clock skilled nursing home care. Routinely located in campus-like settings, CCRCs feature the entire residential continuum from studio or garden apartments to single-family homes to high-rise buildings. Many CCRCs provide units for patients with special medical needs, such as memory support care for dementia patients.
CCRC Facts (According to the Ziegler National CCRC Listing & Profile)
- A CCRC may have not-for-profit sponsorship (82%) or for-profit ownership (18%).
- Approximately half of all CCRCs are affiliated with faith-based organizations; among those affiliations, 21.1% are Lutheran, 17.6% are Methodist, 13.8% are Presbyterian, and 12.8% are Roman Catholic.
- A CCRC may be a single-campus organization or part of a system; the majorities are part of a system. A typical CCRC has fewer than 300 total units; about one-third have more than 300 units; only 8% have more than 500 units.
- CCRCs are located in a range of geographical areas from urban to suburban to rural.
─ Source: Ziegler National CCRC Listing & Profile
If you are currently in the process of exploring senior housing options and would like to learn more about CCRCs, we suggest you read this recent article published by AARP titled, “About Continuing Care Retirement Communities.” Also, before planning your first visit to a CCRC, we recommend accessing this helpful checklist provided by The American Seniors Housing Association.
Feel free to contact Trust Life Settlements at 800-216-2513 if you questions about this article or would like to determine whether you or your loved one qualifies for a life settlement.