The CCRC modified contract provides for the specified provisions using a payment plan based on a one-time Entrance Fee (which individuals pay before moving into the community) and a Monthly Accommodation 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 Fee than a resident who chooses to live in a one-bedroom apartment. A resident needing assisted living services may have a higher Monthly 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 Fee is adjusted accordingly, but no additional Entry Fee is paid.

The two Fees function together, offering many advantages to residents. First, the Entrance Fee makes it possible for the CCRC to offer a Monthly Fee that is reduced, as compared to what "rental retirement communities" charge. Second, all CCRC residents have the knowledge that they will have access to assisted living services and nursing services for the rest of their lives, even if they outlive their financial resources (as provided for in the continuing care contract).

NEXT - The CCRC Tax Benefit