A Continuing Care Retirement Community (CCRC) generally cannot “kick you out” if you run out of money, as long as you were admitted to the community with the understanding that you would receive care throughout your life. However, there are important nuances depending on the type of contract you have, the terms of your agreement, and your financial situation.
Key Points to Understand:
1. Type of CCRC Contract:
CCRCs offer different types of contracts, and the protections available if you run out of money can vary depending on the specific contract you signed.
Type A (Extensive Contract):
- This is the most comprehensive contract and provides lifetime care for all levels of service, including independent living, assisted living, and skilled nursing care. If you run out of money, this contract usually ensures that you continue to receive care without being asked to leave, as long as you meet the medical criteria for the care you need.
- Under this contract, the CCRC typically guarantees that you will not be forced to leave due to financial difficulties, as long as you have been a resident in good standing and meet the health criteria.
Type B (Modified Contract):
- This contract provides a combination of a lower upfront cost and a guarantee of certain services for a specified period of time. After this period, however, you may need to pay additional fees for care that exceeds the standard level covered by the contract.
- If you run out of money after the specified period, you may still receive care, but you may be required to pay for extra services, depending on the terms of the contract. However, in most cases, the CCRC cannot “kick you out” if you no longer have the means to pay, but you may face challenges if you cannot afford the additional fees.
Type C (Fee-for-Service Contract):
- Under this contract, residents pay a monthly fee for independent living, and then additional fees for other services like assisted living or skilled nursing care as they need it.
- If you run out of money, you may be asked to leave if you cannot pay for the additional services required. This is because this type of contract is based on a fee-for-service model, and the CCRC typically does not guarantee long-term care once your resources are depleted.
2. Resident Agreements and Financial Assistance:
In some CCRCs, there are provisions for financial hardship if a resident runs out of money. If you have used up all your personal savings or resources, the community may help you access public benefits like Medicaid or may have its own financial assistance programs to continue providing care. These arrangements depend on the CCRC’s policies, and the assistance provided may vary.
If you are eligible for Medicaid, and the CCRC is willing to accept Medicaid payments, they may continue to provide care even if you run out of money. Some CCRCs have Medicaid-certified nursing care units that can accommodate residents who qualify for the program.
3. Resident Protection Laws:
Some states have laws protecting residents of CCRCs from being forced to leave if they run out of money, especially if the community has guaranteed lifetime care as part of its agreement. However, not all states have these protections, and protections are more likely to apply in Type A contracts.
In any case, most CCRCs strive to maintain their reputation and provide care for residents throughout their lifetime. It is common for CCRCs to work with residents and their families to find solutions if financial difficulties arise.
4. Notification and Exit Process:
- If a CCRC does decide that you must leave due to financial reasons (in cases where the contract doesn’t provide for lifetime care), the process would typically involve notification and some period of transition to help you find alternative living arrangements. However, most well-established CCRCs avoid such situations because it can negatively impact their reputation.
5. Considerations for Future Care:
- It’s important to consider the long-term financial stability of the CCRC and review the terms of your contract before you move in. Some CCRCs offer financial counseling to help ensure that you understand your future financial obligations and options for securing continued care if your resources deplete over time.
In Summary:
While Type A contracts generally offer strong protection against being asked to leave if you run out of money, Type B and Type C contracts may have more limitations, and in these cases, you may be required to move out if you cannot pay for your care. If you are concerned about the possibility of running out of money, it’s important to discuss the terms of your contract with the CCRC and explore options such as Medicaid, financial hardship programs, or assistance that the community may offer. It’s always a good idea to plan ahead and ensure that you understand your financial and care options for the future.