Part 2. The CCRC Contract
Welcome to the second and final installment of our two-part series on Continuing Care Retirement Communities (CCRCs). The first part can be found at this link.
The Shannondale Residency Contract: Fee-for-Service
A Fee-for-Service Continuing Care Retirement Community (CCRC) contract is one of the contract types offered by some CCRCs. Unlike other CCRC contract types, such as Life Care or Modified contracts, a Fee-for-Service contract provides a pay-as-you-go approach to healthcare and long-term care services. It’s usually the most affordable option.
Fee-for-Service contracts provide a pay-as-you-go approach to healthcare and long-term care services. Here’s a list of benefits that provide a more detailed explanation:
- Cost Flexibility: One of the primary advantages of a Fee-for-Service contract is the flexibility it offers in terms of costs. Unlike other CCRC contract types that have higher upfront entrance fees and ongoing monthly fees, FFS contracts often have lower entrance fees. You only pay for healthcare services as you need them, which can be advantageous if you remain in good health for an extended period after moving in.
- Lower Initial Financial Commitment: Fee for Service (FFS) contracts typically require a smaller upfront entrance fee compared to Life Care or Modified contracts. This can make CCRC living more accessible to individuals or couples who want the benefits of community living but have budget constraints.
- Financial Control: With FFS contracts, you retain greater control over your financial resources. You won’t prepay for future healthcare services that you may never use. This can be especially attractive to those who prefer to manage their own finances and invest their money as they see fit.
- Estate Planning: FFS contracts may have estate planning advantages. Any unused portion of your entrance fee or assets set aside for future healthcare costs may be available for estate distribution, which can be appealing to individuals who want to leave a financial legacy to their heirs.
- Flexibility in Healthcare Choices: FFS contracts allow you to choose and pay for
healthcare services as you need them. You have the flexibility to access different
levels of care or healthcare providers based on your preferences and changing
- Couples with Differing Healthcare Needs: FFS contracts can be beneficial for
couples with differing healthcare needs. If one spouse requires more extensive
care than the other, they can receive the appropriate level of care without
affecting the other spouse’s finances.
We hope this two-part series has been informative and helps you understand the enter workings of what Shannondale offers as a CCRC. Your retirement years should be filled with comfort, security, and the opportunity to live life to the fullest!