How CCRC Fees Work
The CCRC contract provides for the specified provisions using a payment plan based on a one-time Entrance Fee (which individuals pay before moving in to the community) and a Monthly Service Fee. The amount of each of the two Fees is based on the type of housing accommodation and the level of care the resident chooses.
A resident who chooses a three-bedroom cottage will pay both a higher Entrance Fee and a higher Monthly Service Fee than a resident who chooses to live in a one-bedroom apartment. A resident needing Assisted Living or Memory Care may have a higher Monthly Service Fee than a resident who requires no assistance. If an individual comes to the community as an Independent Living resident, then moves to another level of care, the Monthly Service Fee is adjusted accordingly, but no additional Entrance Fee is paid.
The two Fees function together, offering residents many advantages. First, the Entrance Fee makes it possible for the CCRC to offer a Monthly Service Fee that is reduced, as compared to what other types of retirement communities charge. Second, all CCRC residents have the knowledge that they will have access to Assisted Living, Memory Care, and Skilled Nursing Services for the rest of their lives, even if they outlive their financial resources (as provided for in the Continuing Care contract).
