Wade A. Taylor
8/31/2019 11:40 AM
Does anyone see a problem from either an ethical, moral or actuarial point of view with a CCRC/Life Plan community selling an Entrance Fee Residential Agreement/Life Plan contract to someone in their late 80s or 90s? Or should the decision to purchase rest entirely on the purchaser/prospective resident in such an agreement/Contract transaction?
Jennifer J. Young
9/2/2019 9:39 AM
Life Care (Type A) contracts are deemed "insurance" contracts, hence in most states regulated by the state's Department of Insurance. Therefore, I believe the provider can require a physical and cognitive exam for acceptance. This may also be the case for Modified Type B contracts. I'm not sure how the "age is just a number" stance jibes with a provider being able to utilize an age cap. That's probably why you're not seeing it …. it could be that just requiring the medical exam does the "gleaning" without stating a specific age limit.
In fee-for-service (Type C) contracts, there is no large financial commitment on the part of the organization if health care becomes necessary. The resident pays full market rates for health care. For all I know, some f-f-s providers might welcome older move-ins because the independent unit may "turn over" more quickly, with minimal wear and tear. Marketing can then seek a whole new entrance fee and the health care unit gets full-bore payment.
F-f-s communities as well as rental CCRCs (Type D) also might have to comply with Fair Housing regulations, which may prohibit discrimination based on age and physical condition.
This is a topic worthy of discussion, so I hope there will be more comments. Also, if I stated anything in error I hope others will speak up.