If you’ve ever traveled to a country where you didn’t speak the language, you may have an idea of how it can sometimes feel to be a senior living prospect. In addition to all the other considerations in the decision process, prospects also must break through the clutter of the industry’s senior living terminology. This is perhaps especially true of prospective residents of life plan communities, traditionally referred to as a continuing care retirement community, or CCRC.
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A shift in senior living nomenclature
While the litany of senior living terms and labels has always been a bit confusing, it’s arguably worse today than ever. More labels open the door to more misuse of those labels — just one more thing to further cause confusion for the consumer and delay decision-making.
The term “continuing care retirement community” is perhaps the best example of a label that has changed over time, resulting in misinterpretation in some cases. About 10 years ago, LeadingAge, an advocacy organization for nonprofit senior living organizations, decided it was time to change the category name for retirement communities that offer a continuum of care.
In part to create more appeal to the aging Baby Boomers, LeadingAge proposed shifting away from the traditionally used “continuing care retirement community,” or CCRC. LeadingAge convened a task force charged with coming up with a term that more accurately described this type of retirement community.
In their 2015 report, the task force noted that to better serve the preferences and needs of today’s older adults, many senior living communities had evolved from traditional care providers into dynamic communities offering diverse housing options and new opportunities for their residents to pursue their passions.
As a result, the task force suggested that the term “continuing care retirement community” no longer captured the lively, progressive spirit of modern senior living, which, they proposed, is more accurately described as a “life plan community.”
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The defining feature: A continuing care contract
Generally speaking, a continuing care retirement community has always been considered a community that offers residents a continuing care contract. The specifics of such a contract vary based on the definition of “continuing care” in the state in which the community is located, as well as other organization-specific details.
Basically, a continuing care contract provides a resident with access to a full range of care services, from independent living to assisted living, memory care, and skilled nursing care, often, but not always, in exchange for the payment of an entry fee, as well as ongoing monthly service fees.
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Continuing care contract lingo confusion
Among the approximately 2,000 or so CCRCs/life plan communities across the U.S., there are different types of financial or contract models offered. Mostly, these models dictate if and how a resident’s monthly service fee changes as a result of moving within the community — from independent living to assisted living or nursing care.
As illustrated in our article “A Primer on CCRC Contract Types,” a lifecare or type A contract is one type of CCRC contract, along with others such as a modified (type B) contract, or a fee-for-service (type C) contract.
To make matters even more confusing, we’ve observed an increasing number of life plan communities referring to themselves as “lifecare communities,” despite the fact that they do not offer what has typically been thought of as a lifecare contract.
At the same time, we’re finding that some providers that actually do offer lifecare contracts are referring to themselves as “life plan communities.” The emergence of “equalized rate lifecare” contracts, sometimes called “modified lifecare,” has caused still other providers to refer to themselves as “true lifecare communities.”
But the phraseology doesn’t end there. Yet another complexity is that some states have their own definitions for this type of retirement community. For example, Illinois refers to entry fee continuing care contracts as “lifecare” contracts even though the industry as a whole doesn’t do this.
>> Related: CCRC, Life Plan, Lifecare: What are the Differences?
Senior living terminology consistency benefits all
If your head isn’t swimming yet, I’d be impressed. It truly can be mind-numbingly confusing to try to sort through all of the nomenclature used by CCRCs, aka life plan communities, aka lifecare communities, aka true lifecare communities.
And this is to say nothing of the other senior living industry lingo such as active adult living, independent living with services, rental retirement community, 55+ community, and so forth. It’s no wonder that consumers so often feel overwhelmed when evaluating their choices. If there is this much confusion and inconsistency within the senior living industry, how can we ever expect consumers to understand the lingo!
As an industry, senior living and care needs to strive for more clarity and more consistency in the language they use. Establishing standard terminology and definitions would serve the best interests of prospective residents, eliminating some of the stress and confusion that is inherent to making a major life decision.
If you are an older adult looking for a glossary to help you navigate all of these terms, or you’re a retirement community looking for a resource for your prospects, check out The Ultimate Guide to Senior Living Terminology. It’s a one-stop location where you can find easy-to-understand definitions of the most commonly used senior living industry terms.
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