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chisue

Arguments Pro/Con CCRC's

chisue
7 years ago
last modified: 7 years ago

Following our thread about LTC insurance, I looked up information about Continuing Care Retirement Communities in my area. This is where you buy in, then pay the same (adjustable) monthly fee regardless of whether you are self-sufficient, are in assisted living, or need skilled nursing care. I'm not sure how this model applies to hospice.

I realize that it is to the the advantage of the communities to have people enter early and pay monthly revenue for less care for longer, but I was surprised by the number of people featured in brochures who joined in their late sixties/early seventies.

There are different size cottages/apartments that determine your initial buy-in cost. I saw three buy-in options: No refund, 60% refund, 90% refund. The no refund plan having least upfront expense, with monthly fees the same for all.

The 2BR units I compared at no-refund rates ranged from about $500K to over a million dollars, with monthly fees of $6K to $8K. These were closest to our home. There are less expensive -- and more expensive -- CCRC's all across the country. One of these is hospital-affiliated. One has a religious affiliation. Both are well established.

What do you see as the pro's and con's for CCRC's? My DH and I had assumed that we would live in our SFH, hiring daily help as needed, unless/until we required killed nursing care. It requires an 'attitude adjustment' for us to live even slightly 'communally' in our Maui condo for a couple of months! Maybe we are uniquely unfitted to this plan? Is this wiser financial choice?

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