It depends. CCRCs are about where you live. LTCI is about paying for care. Originally CCRCs embedded care in deposit and residency fees. So, they can be redundant, but don’t have to be. Both CCRCs and LTCI have evolved. Now it depends on the CCRC contract and LTCI policy. CCRCs understand this. You should discuss your LTCI with them upfront. LTCI pays custodial care in two ways.

1. Reimbursement policies require documentation of specific custodial time and materials and reimburse providers up to specific limits.

2. Indemnity policies pay you a lump sum or recurring amount simply because you have a specific condition. The indemnity type provides funds you can use as you choose, regardless of where you live.

For Reimbursement policies it’s problematic if there is no way to discreetly document the care costs. There are three types of CCRC contracts where “it depends”.

Type A (lifecare) contract: You pre-pay for health-related services. The cost is embedded in your initial deposit and residency fees, regardless of whether you live in an independent, assisted, or skilled nursing setting.

While you could qualify for care under the LTCI policy, and could stay in the independent setting, you’d essentially pay twice. Also, if your needs are limited it could be difficult to obtain help.

Type B (modified residency) contract: Costs less and partially pre-pays health-related services. When you transfer to care, you also pay discreetly for care but get a discount on the market rate. If you qualify under a policy, it may help you pay all or part of the discounted costs.

Type C (fee-for-service) and other contracts don’t embed care costs. Assisted and skilled nursing care are billed at full market rates. LTCI is primary, and anything beyond its limits are out-of-pocket costs for you.