Rate setting and disclosure in continuing care retirement communities (CCRCs)

Journal of Health Care Finance

Volumn 34, Issue 3, 2007, Pages 55-65

  Anderson, Seth C ^a   Michelman, Jeffrey E ^b   Johnson, Raymond M ^c   Quick, Kristi ^c  

^a TUSKEGEE UNIVERSITY   (United States)

^b UNIVERSITY OF NORTH FLORIDA   (United States)

^c LCPS Inc   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

HEALTH CARE COST; HEALTH CARE ORGANIZATION; HUMAN; LONG TERM CARE; MEDICAID; MEDICARE; RETIREMENT; REVIEW;

AGED; AGED, 80 AND OVER; DISCLOSURE; HOUSING FOR THE ELDERLY; HUMANS; RATE SETTING AND REVIEW; SOCIAL CLASS; UNITED STATES;

EID: 40649083857     PISSN: 10786767     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Review

References (22)

1. Data obtained from American Association of Homes and Services for the Aging at: http://www.www2.aahsa.org/aging_services/default.asp and was accessed on Feb. 22, 2007.
2. From Living Longer, Working Longer: The Changing Landscape of the Aging Workforce - A MetLife Study, pp.1-28, prepared by the Metlife Mature Market Institute, David DeLong and Associates and Zogby International, (Apr. 2006), p. 4. http://www.metlife.com/Applications/Corporate/WPS/CDA/ PageGenerator/0,4132,P8895,00.html.
3. Cf. Conover, C.J and Sloan, F.A., "Bankruptcy Risk and State Regulation of Continuing Care Retirement Communities," Inquiry, Winter (1995/96), 32: 444-456.
4. The data is based on information compiled for the 2000 US census and is available at: http://www.aoa.gov/prof/Statistics/Census2000/2000-1999-Pop. asp.
5. MetLife Mature Market Institute Demographic Profile of Americans 65+, prepared by the Metlife Mature Market Institute http://www.metlife. com/Applications/Corporate/WPS/CDA/PageGenerator/0,4132,P8895,00.html.
6. Based on data available from Older Americans 2000: Key Indicators of Well-Being, prepared by the Federal Interagency Forum on Aging-Related Statistics, (Jan. 13, 2005), http://agingstats.gov/chartbook2000/economics. html.
7. Ibid, agingstats.gov, p. 17.
8. Ibid, Living Longer, Working Longer, p. 18.
9. The data is based upon the income distribution of those over 65 from Economics of Aging, pp. 10-20 and can be found at: http://www.agingstats.gov/ chartbook2004/Economics.pdf, p. 3.
10. Moreover, traditional nursing homes need to be aware of these statistics; for although these seniors represent a market with both added resources and enhanced financial support from their children, the percentage of this group that actually stays in nursing homes as private pay patients is continuing to decline. Based on P.R. Willging, "Long-Term Care Needs to Change its Focus," Nursing Homes (Feb. 2004), 53(2): 14-16.
11. It is not clear whether healthier seniors choose CCRCs or seniors living in CCRCs are healthier. What is clear, however is that there is a correlation between quality of life and those living in CCRCs as illustrated by K.R. Jenkins, A.M. Pienta and A.L. Horgas, "Activity and Health-Related Quality of Life in Continuing Care Retirement Communities," Research on Aging (January 1, 2002), 24 (1): 124-149.
12. Well-educated seniors with family support and financial resources are increasingly choosing to focus on the right housing environment for their retirement rather than the right health care environment.
13. Ibid, AAHSA.
14. CCAC recently merged with the Commission on Accreditation of Rehabilitation Facilities (CARF). As of the end of 2006, the Continuing Care Accreditation Commission (CACC) accredited 331 of these. CACC recently merged with the Commission on Accreditation of Rehabilitation Facilities (CARF). Data was collected from CARF-CCAC-Accredited Continuing Care Retirement Communities http://www.carf.org/Consumer.aspx?Content=CCACSearch and was accessed on Feb. 22, 2007.
15. It should be noted that there was a 5 percent decline in the number of accredited CCRCs from 2004 through 2006 which also impacted on the top 12 states which went from 78.9 percent in 2004 to 73.22 percent in 2006.
16. Further, in states such as Pennsylvania, California, and Florida, seniors have significant CCRC options compared to the number of nursing homes, and as a result, healthy seniors with strong balance sheets will be reluctant to choose nursing homes, leaving these providers primarily with financially challenged patients/residents.
17. The range is based upon data obtained from R.M. Keller, Complete Directory of Continuing Care Retirement Communities™ (2006) CCRC Data, Inc. and available from: http://ccrcdata.org/
18. Further the average monthly cost of living in a not-for-profit CCRC was $2,672 based on data from ibid, aahsa.org.
19. Data was compiled from the US Census Bureau at: http://www.census.gov/ main/www/cen2000.html and ibid, R.M. Keller.
20. Data was collected from http://www.medicare.gov/NHCompare/Include/ DataSection/Questions/SearchCriteria.asp?version=default&browser= IE%7C7%7CWinXP&language=English&defaultstatus=0&pagelist= Home&CookiesEnabledStatus=True and was accessed on Feb. 22, 2007.
21. The Vicar's Landing percentage changes slightly each year, but the significance in the Vicar's CPI does not.
22. In 2006, to deal with skyrocketing increases in wind insurance (60 percent and the imposition of a 5 percent deductible) Vicars Landing set up their own catastrophic reserve fund. In order to fund adequate reserves Vicar's Landing assessed a monthly fee per contract holder of $45 for a three-year period.