L1: Continuing Care Retirement Communities

Question 1

Continuing Care Retirement Communities

Answer 1

residential facilities for seniors that provide a continuum of care based services on changing needs of residents.

Question 2

Continuing Care Retirement Communities
3 levels varying degree in personal/medical support provided

Answer 2

Independent Living Units (ILU)
Assisted Living Units (ALU)
Skilled Nursing Facility (SNF)

Question 3

Continuing Care Retirement Communities:
Independent Living Units (ILU)

Answer 3

seniors first live independently in ILU with minimal assistance like: emergency call, house keeping and transport

Question 4

Continuing Care Retirement Communities:
Assisted Living Units (ALU)

Answer 4

senior who need help with at least one activity of daily living will move to ALU and receive medical assistance

Question 5

Continuing Care Retirement Communities:
Skilled Nursing Facility (SNF)

Answer 5

seniors who need ongoing medical care move to hospital like facility

Question 6

Types of Continuing Care Retirement Community Contracts (3)

Answer 6

Full Life Care / Life Care
Modified Life Care
Free-for-service

Question 7

Types of Continuing Care Retirement Community Contracts - Full Life Care / Life Care

Answer 7

residents pay a large entry fee and monthly payment in exchange for guaranteed access to all services

Question 8

Types of Continuing Care Retirement Community Contracts - Modified Life Care

Answer 8

Resident pay lower fee and monthly premium when they join. Can increase when residents move from ILU to ALU to SNF but never more than Full Life Care costs

Question 9

Fee-for-Service

Answer 9

resident pay lowest fee and monthly premium for accommodation costs. Will have to pay for all health care they receive at current market rate since no pre-funding of health care costs

Question 10

Full Life Care and Modified Life Care Contracts
- why is it form of insurance
- what is required of potential residents

Answer 10

• form of insurance as transfer of risk of increase health care costs from resident to CCRC
• require potential residents to take medical exams to prove healthy independent living

Question 11

Full Life Care and Modified Life Care Contracts
- may offer (2)

Answer 11

• partial refund when resident moves out of CCRC or when they die
• partial ownership of ILU in exchange for some or all of entry fee