Since the 2008 recession, which still remains fresh in our minds,  financial regulation has become an increasingly important issue within the CCRC industry and among consumers. There can be confusion about whether or not CCRCs are regulated.

Here are a few important details to understand about financial regulation of CCRCs:

  • CCRCs are regulated at the state level, although Congress has considered various proposals over the years to introduce greater federal oversight.
  • There are thirty-eight states that regulate CCRCs through various departments, such as insurance, financial services, aging services, or social services. The remaining twelve states currently have no regulatory structure in place for CCRCs. There are two states – Alaska and Wyoming – that do not have any CCRCs.
  • Financial regulation of CCRCs should not be confused with healthcare-related regulations. For instance, if the healthcare facility located on a CCRC campus is Medicare or Medicaid certified it will be strictly regulated by the appropriate agency within the state, such as the Department of Health and Human Services, for example. But these agencies do not regulate the overall operations and financial management of the community.
  • The definition of a CCRC and the degree of regulation varies from state to state. Some states require annual reporting and submission of certain documents, along with minimum levels of cash reserves and other requirements. Other states regulate much more loosely.

Be sure to find out if the state in which you are considering residing regulates CCRCs. If so, ask about their financial oversight process and financial requirements for CCRCs located in the state.

>> Related: How to Have Confidence a CCRC Will Be a Sound Long-Term Investment

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