What is a CCRC?

A CCRC, short for Continuing Care Retirement Community, is a place that offers all levels of care, from Independent to Assisted to Skilled Nursing, within one community. Many CCRCs also offer Memory Care on-site. CCRCs are typically considerably more expensive than the month-to-month stand-alone options I’ve covered in previous articles. That said, people who can afford this often choose to do so for peace of mind.

People want to know -- when they enter a community -- that they will be cared for at that community, whatever needs develop over time, until they pass away.

Who wouldn't want this sense of security?

What prevents the majority of people is the expense. All the CCRCs in this region, until recently, required a hefty entrance fee, ranging from $60,000 on the low end up to over $500,000 on the higher end. In some cases, that entrance fee provides ownership of an Independent Living home, which can be sold later to benefit heirs; in other cases, the upfront fee covers community upkeep, as well as care costs down the road. Skilled Nursing Care is expensive. In this area, it ranges from $160/day up to $350/day, depending on the facility. Some CCRCs bank your upfront deposit to pay for up to X number of Skilled Nursing days in the future. Many provide tiered payment options. For example, a two-bedroom cottage at a CCRC in Durham requires an upfront payment of $536,000 if you don't want any money back for your heirs after you pass away. If you would like fifty percent of your payment back after you pass, you pay $742,400; if you want 90% back, you pay $948,800. The monthly service fee, by the way, for this cottage is $6725.

The newest CCRC in the area, The Cardinal at North Hills, has the most reasonable entrance, or "community," fee available: two times the monthly rent (somewhere in the ballpark of $10,000) and then you pay month-to-month.

It's important to understand that the entrance fee for any of these does not preclude you from paying an additional monthly fee. These fees, for an Independent Living apartment, can start at $3000/month; for Assisted, $5000+/month and then you tack on the daily care level costs.

Believe it or not, almost all the CCRCs in the area are fully occupied, in spite of an application process which weeds out applicants in terms of both finances and the likelihood of developing the costly needs associated with Alzheimer's, dementia and Parkinsons. Many have waiting lists. It is about four years to get a house at Springmoor in Raleigh. (Other options are available more quickly.) The wait at Carol Woods in Chapel Hill is eight to ten years.

What's the take-away message? Save your money. Research your options well ahead of time. Visit (repeatedly). Talk to people. Have a meal there. Spend a day.