Understanding Continuing Care Contracts: What You Need to Know

Definition & Meaning

A continuing care contract is an agreement that provides for ongoing care services to individuals, typically older adults, in a continuing care community, also known as a life care community. This type of contract ensures that residents receive various services, including housing, personal care, nursing care, and other support, either within the community or in designated settings. The contract outlines which services are included in the payment and which may incur additional charges, such as food, burial, and personal services.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: An elderly couple enters into a continuing care contract with a local life care community. The contract details that their monthly fee covers housing, meals, and basic personal care, while additional nursing services will incur extra charges.

Example 2: A single individual signs a continuing care contract that guarantees them access to nursing care and personal services as needed, with specific fees outlined for services beyond the basic package. (hypothetical example)

State-by-state differences

State Key Differences
Florida Has specific statutes governing continuing care contracts, including consumer protections.
California Requires additional disclosures about fees and services in continuing care contracts.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Key Differences
Continuing Care Contract An agreement for ongoing care services in a community setting. Includes housing and care services, often with an entrance fee.
Assisted Living Agreement A contract for living arrangements with assistance for daily activities. Focuses more on daily living support rather than comprehensive care.

What to do if this term applies to you

If you are considering a continuing care contract, it is essential to carefully review the terms and conditions. Make sure to understand what services are included and what may incur additional fees. You can explore US Legal Forms for ready-to-use templates to help manage your agreements. If your situation is complex, seeking advice from a legal professional is advisable.

Quick facts

  • Typical fees vary widely based on services and location.
  • Jurisdiction: Varies by state, with specific regulations in some states.
  • Possible penalties for non-compliance with contract terms may include termination of services.

Key takeaways

Frequently asked questions

A continuing care contract is an agreement that outlines the care services provided to individuals in a continuing care community.