Last month we wrote about moving to what commonly is referred to as an assisted living facility. We mentioned that Maplewood in Orange and Coachman Square in Woodbridge are examples of local assisted living facilities.
This month we are writing about a different type of communal living arrangement for seniors called a continuing care retirement community (“CCRC”). Examples of CCRCs in this area are Elim Park (Cheshire), Evergreen Woods (Branford), Masonicare (Wallingford), and Whitney Center (Hamden). For a fairly large entrance fee and a continuing monthly service fee you are purchasing a “continuum of care” that covers you from independent living, to assisted living, to skilled nursing (short term or long term), and, if needed, to memory care. Whatever level of care you need, it is provided on the same attractive campus. If you enter as a couple but age differently, the continuum of care allows both of you to remain on the same campus even though you may be in different living arrangements.
The entrance agreement is an extremely important legal document. Typically, you will have a choice of signing an all-inclusive agreement, a modified agreement, or a fee for service agreement.
The rates will differ for each. The choices you have and the entrance agreement, itself, should be carefully reviewed by you with your professional advisors. Here are a few questions that should be brought up when reviewing these agreements: Is there a refund of the entrance fee? Under what circumstances would a refund be issued? If you move from independent living to assisted living or skilled nursing does the monthly service fee change? How is the change in in monthly service fee calculated? What happens if you run out of money and can no longer pay the monthly service fee? As you can see, it is important to have a complete understanding of the agreement that you are signing.
CCRCs are licensed and regulated by the Department of Social Services (“DSS”). State law requires each CCRC to file an annual “disclosure statement” with DSS. State law also requires the CCRC to give you a copy of the disclosure statement before you sign an entrance agreement. The disclosure statement is also a very important legal document that should be carefully reviewed by you, with your professional advisors. Here are some things to consider when reviewing the disclosure statement: Is the CCRC financially sound? How old is it? Do the buildings or grounds require repairs or need to be replaced? How will any improvements affect your monthly service fee? What is the occupancy rate? Are management decisions made locally or in another State?
Because of the growing importance of CCRCs as prov-iders of housing and health care to Connecticut seniors, Connecticut enacted legislation in 2015 creating a Bill of Rights for residents of CCRCs.
The Bill of Rights establishes numerous protections for residents of CCRCs, such as (1) requiring the CCRC to involve the resident in decisions affecting him/her; (2) requiring the CCRC operator to be transparent about the financial stability of the CCRC; and (3) requiring the CCRC operator to provide timely notification about developments affecting the CCRC.
A CCRC can be a great housing/long term care medical choice for seniors, whether you are single or married. At the same time, though, it usually represents a large financial investment, and it also takes emotional capital to investigate the options to make sure it is the right choice for you. If you are considering a CCRC, make sure to involve your family and professional advisors in this important decision making process.