Fee-For-Service – CCRC Type C Contract
Continuing care retirement communities (CCRC) have three basic contracts and two outliers. Here we look at Type C or “Fee-For-Service” contracts. Most CCRC offer Type C contracts. It allows them to fill out vacancies and charge current costs for additional services.
Fee-For-Service Or Type C Contracts
Type C contracts do not guarantee payment for additional levels of care. Instead, they guarantee priority or admission to these facilities. Fee-for-service agreements in CCRCs require an entrance fee and ongoing monthly fees like the other types of contracts. However, Type C contracts do not include any discounted health-care or assisted living services. Instead, the resident must pay the regular per diem rate paid by those admitted from outside the CCRC. With this type of contract, the resident bears the financial burden of his or her additional long-term care needs. The charges will vary, depending upon the services needed.
Costs of CCRC Type C Contracts
Like Type A and B contracts, Type C contracts also require upfront buy-ins and monthly fees, just not as large. Type C contracts are trying to target seniors that want lower buy-ins and monthly payments with access to assisted living and nursing care if needed. The “buy-in” is usually between $200,000 and $750,000. Monthly fees are usually between $1,500 and $2,500. Fees for additional care services are at the then-current rates that an outsider would pay.
Make Sure To Answer These Key Question
Type A contracts require large upfront buy-ins and monthly fees. Think of it like purchasing
Review The Other Contract Options
Before moving on, make sure you’ve reviewed Contract A, and Contract B. They are very different and have a substantial impact on short and long-term costs.