Finding the Right Care Facility

Photo credit: Dominik Lange, Unsplash

Over the last two decades, there has been an explosion of supportive housing choices. Your options are no longer restricted to living at home or relocating to a nursing facility; today, assisted living facilities and continuing care retirement communities (CCRCs) are the primary alternatives to nursing homes. 

Assisted living facilities 

Assisted living facilities are intended to compromise between staying home and entering a nursing home. Accommodation is frequently found in a retirement home, focusing on privacy, customized care, and independent living. Despite the emphasis on freedom, most facilities provide 24-hour care to assist residents with daily activities. Medical aid may be provided 24 hours a day, seven days a week. Most states are adopting or increasing regulation and oversight of this expanding business. Advancing Person-Centered Living's website, ccal.org, has further information about your state's policies. 

What Will It Cost? 

According to the Genworth 2021 Cost of Care Study, the average monthly cost of assisted living in the United States is $4,500. While looking for assisted living homes, ensure you get a detailed explanation of each facility's fee structure. It is common for a facility to charge a reasonable cost for bed and board, but that amount may only cover a few hours of assistance each week. If your family member needs additional support, additional expenses will undoubtedly exist. Make sure to ask about how the care will be provided, whether by facility personnel or contracted aids, and how much it will cost. Long-term care insurance coverage may cover some of the expenses.

While assisted living facilities are often less expensive than nursing homes, many state Medicaid programs now provide some financing for Medicaid-eligible senior people in assisted living facilities. 

Continuing Care Retirement Communities (CCRCs) 

CCRCs house many residential alternatives under one roof, from independent living to assisted living to 24-hour nursing care. In exchange for the promise of lifetime care, residents often pay an admission fee and an adjusted monthly rent. Assisted living facilities and even nursing homes make no such promises and may even ask a person to leave if they cannot provide proper care.

When people enter CCRCs, they are typically in good health. They can move into living arrangements that provide the support they require if and when it becomes necessary. Nursing care is provided either within the CCRC or at a neighboring institution. CCRCs generally provide additional services, such as the following.

• Meals

• Housekeeping

• Maintenance

• Transportation

• Social Activities

• Security Services
  

Is there an Entry Fee?

CCRCs often charge a one-time admission fee of $40,000 to more than $2,000,000. Generally, 90% of the admission money is refunded if the person leaves the institution or dies. Residents pay monthly maintenance or service costs, which average around $3,555 per month, once they move in. Seniors frequently use the earnings from the sale of their residences to make the initial investment in the retirement community. But remember that the Federal Revenue Agency does not enable house sellers to avoid capital gains taxes by rolling those capital gains into the purchase of a CCRC unit. Several communities have also begun to provide their services on a rental basis. 

Choosing a CCRC

Because of their high expense, limited availability, and the fact that most individuals prefer to stay in their homes as long as possible, CCRCs may have limited appeal. Those who cannot live freely are often not ideal candidates for CCRCs. Finding a long-term care facility for a loved one in such circumstances can be challenging. When a hospital or rehabilitation facility is about to discharge a loved one, or it is no longer viable for the loved one to live at home, the search often becomes an urgent task. And, in most circumstances, you will complete the research without the benefit of previous expertise and knowledge.

Here are a few general guidelines that might assist you in making the proper choice:

1. Location, location, location - Visits from family members are more significant to a resident's quality of life than any other element. Make it as simple as possible for relatives and friends to visit. Furthermore, treatment is generally improved when the facility knows someone close is concerned and paying attention. 

2. Get references - Get the names of residents' family members so you may question them about the care offered at the facility and the staff's reaction when residents or relatives have concerns. 

3. Check licenses and certifying agency reports - Is a valid license displayed? Is it possible for you to study a state inspection report? 

4. Investigate care plans (for nursing homes) - Discuss with the facility administration or nursing staff how care plans for residents are formed and how the staff reacts to concerns made by family members. 

5. Tour the facility - Avoid being charmed by a luxurious lobby or disheartened by an older, dated facility. The most important factors are the quality of care and the interactions between staff and residents. 

6. Ask if you can stay for a meal - This will assist you in determining the quality of the meal service. Eating is both a need and a long-lasting pleasure.

Important Disclosures
This material is provided for general and educational purposes only and is not investment advice. Your investments should correspond to your financial needs, goals, and risk tolerance. Please consult an investment professional before making any investment or financial decisions or purchasing any financial, securities, or investment-related service or product, including any investment product or service described in these materials.

Portions of this article were sourced from the work of MFS Heritage Planning. Neither MFS nor any of its subsidiaries are affiliated with Optima Capital Management.

---

Our Insights