Challenges Facing Current and Future Residents of Continuing Care Communities

Abstract

The financial crisis that hit the headlines in 2008 exposed a weakness in the sector of the senior living industry known as Continuing Care Retirement Communities (CCRCs). CCRCs were frequently using entrance fees to fund daily operating expenses, while relying on turnover of properties and quick resales to generate additional fees needed to fund the rising cost of health care in Type A & B facilities, or to honor promises of "refundability" of entrance fees in Type C contract facilities. In some instances, state lawmakers, regulatory authorities, resident organizations and industry leaders have responded to concerns by working together to provide better transparency and greater actuarial accountability. This keynote address to the Maryland Continuing Care Residents Association (MaCCRA) in 2013 focuses on key points of ongoing concern for current and future CCRC residents.

Keywords: elder law, aging, continuing care retirement communities, CCRCs, actuary, contracts, senior living