FAQ: What is a Fee-for-Service Contract?
Having flexible financial options to make the most of your retirement is important. Pennswood Village, a Continuing Care Retirement Community (CCRC) in Bucks County understands this. As a resident of Pennswood Village, whether you already have long-term care insurance or not, you can live the retirement lifestyle you want with the security and peace of mind of future protection and services.
Joining the Community
With most agreements, a resident will pay an initial, one-time entrance fee when they move into a community (often based on the size of the residence selected), and a recurring monthly fee, also known as a monthly service fee.
The initial entry fee provides a “lease for life” for your new apartment home, capital costs for running and maintaining the community, and may even provide some coverage for future health care costs, depending on the type of agreement you select. The monthly service fee covers the cost of services and amenities, which often include dining services, housekeeping, maintenance, and programs.
An Ideal Agreement
Pennswood Village offers two kinds of agreements or contracts: Life Care and Fee-for-Service. In a Life Care contract, when residents enter the community, they pay a larger entrance fee to cover the cost of future health care services. On the other hand, a Fee-for-Service contract means paying a lower initial entrance fee and paying for health care services when and if they are needed.
With a Fee-for-Service contract, new residents pay a lower entrance fee than they would with a Life Care contract, and pay a lower monthly service fee. As a resident, if you were to ever need health care services in the future, these would be offered, depending on availability, at regular market rates.
This type of contract is ideal for someone who already posses some from of long-term care insurance, or has additional means of receiving health care services. It is also a good option for those who have had relatively few health issues, and don’t want to pay up front for additional services that they may never use. A Fee-for-Service contract may also be appealing for those who want to keep their future healthcare choices open-ended, so that if and when they need services, they can choose where they want those services delivered.
The Fee-for-Service contract at Pennswood Village requires that you be Medicare eligible, and have traditional Medicare with a supplemental plan or a Medicare Advantage PPO plan as well as prescription coverage. If you’re unsure which contract works best for you and your financial needs, call for an appointment. We can help identify which contract choice makes sense for you.
For more information on the Fee-for-Service contract, or any of our other financial options, give us a call today at 866-740-4977.