The growing demand for home-based services in the past several years have been fueled by an ailing housing market, technological innovations and seniors’ demand to remain in their homes, according to CliftonLarsonAllen.
The number of at-home programs offered by the largest 100 nonprofit senior living organizations in the U.S. grew by 32% between 2010 and 2011, according to the 2012 LeadingAge Ziegler 100 Fact Sheet.
A Continuing Care at Home (CCaH) program is one way entrepreneurial providers are seeking to help mold the future — in most cases by building on core strengths that have been developed over time and balancing the demands of a new and distinct service line.
An important aspect of the program is care coordination.
When developing and operating a CCaH-type program, sound actuarial pricing is key, the white paper says. Actuarial studies should include several components, such as a clear definition of the package of services and their costs; the criteria a member must meet to qualify for services; a daily cap on expenses; and the estimated future utilization of services.
Consumers can choose from various pricing options that may include a variety of co-pays for future services; home care only; long-term car insurance (LTCi) policy credit; limited total life-time benefit amount; or a refundable membership fee.
Since the CCaH concept is fairly young, the actuarial firm hired to price the CCaH program must have experience with CCRCs, CCaH programs, and LTCi, notes CliftonLarsonAllen.
The firm stresses importance on LTCi data since these insurance companies offer a variety of policies and have longer, as well as older, policy data to help validate future utilization of services.
While CCaHs are believed to help boost occupancies in other senior living residences, CliftonLarsonAllen does not find the CCaH program to dramatically influence occupancy in independent living facilities, however, CCaHs do promote transitions for seniors moving from the program to retirement community campuses.
“Moving from the CCaH program into independent living on campus sometimes depends on the financial incentives offered to members,” writes CliftonLarsonAllen.
Members of some programs even receive 90%-100% credit of their CCaH membership fee to apply toward entrance fees if they decide to move onto campus, says Pamela Klapproth, vice president of community outreach services and managing director of the Seabury at Home program in Bloomfield, Connecticut.
Originally designed to provide security for individuals placed on the program’s waiting lists, Klapproth notes that seven Seabury program members have moved onto campus since the introduction of the entry fee credit program in 2009.
“Overall, we find that most of our at-home members have different desires and interests compared to our campus residents in regards to where they want to live,” says Klapproth.
As it matures, the CCaH model will continue to have a role in shaping, refining and strengthening what has already been a successful, innovative care, writes CliftonLarsonAllen.
Written by Jason Oliva
