1. Introduction to Friends Life Care
October 19, 2014 1

2. Time Line: Friends Life Care
Friends Life Care develops “CCRC without Walls” business model with $2.5 million grant funding from the Robert Wood Johnson Foundation and the Pew Charitable Trusts.
Goal: develop a lower cost alternative to the campus-CCRC for those who prefer to remain in their own homes

3. Key Features (Type A) The Original CCAH Plan
Based on Type A CCRC Contract
Upfront entrance fee ($10k-$44k)
Ongoing monthly fee ($400-$1400)
Unlimited lifetime benefit of home care, assisted living facility and nursing home
Minimum age for enrollment: 60
Maximum age for enrollment: none

4. CCAH Services Care Coordination
Home care (assistance with activities of daily living)
Coordination of Medicare benefits
Remote monitoring technology
Home delivered meals
Adult day care
Assisted living facility (optional)
Skilled nursing facility (optional)
Referral Service/Resource Center

5. Time Line: Friends Life Care
Operations initiated on 7/1/90 with 78 members
Average enrollment: 170 new Type A members per year through 1990s
Average age at enrollment: 78
By late 1990s, Friends Life Care experiencing significant cost increases for the provision of care

6. Time Line: Friends Life Care
Rate of new member enrollment drops precipitously (to 71 new members in 2002)
Service costs continue to rise
2003: Friends Life Care develops and implements Type B CCAH Plan
Rate of enrollment increases to 230 new Type B members per year (average)

7. Key Features: Type B CCAH
Maximum daily benefit
Maximum lifetime benefit
Entrance fee equivalent to first year’s annual fee; entrance fee paid over first 5 years of membership (annual fees ranges from $1500 to $10,000; average annual fee: $3000)
Minimum age for enrollment: 40
Maximum age for enrollment: 81
Average age for enrollment: 67

8. (paid annually/lump sum)
Sample Fee Schedule
$100 per day $110,000 Pool of Money
Age
Entry Fee
(paid over 5 years)
Monthly Fee
(paid annually/lump sum) 50
$1,000
$85 60
$1,500
$125 70
$3,000
$250 80
$5,700
$475

9. (paid annually/lump sum)
Sample Fee Schedule
$100 per day $255,000 Pool of Money
Age
Entry Fee
(paid over 5 years)
Monthly Fee
(paid annually/lump sum) 50
$1,200
$100 60
$1,800
$150 70
$3,400
$285 80
$7,500
$625

10. Time Line: Friends Life Care
Friends Life Care adds robust prevention initiatives and wellness program
Collage Lifestyle Assessments
At-Risk Assessment Tools designed specifically for CCAH Population
VigR™ : Vitality Independence Growth Resilience (winner of LeadingAge Innovation in Care & Services Award)

11. An Actuarial Perspective
Because there are daily and lifetime limits on the amount paid by Friends Life Care for the Type B members, they pose less of an actuarial risk than the organization’s 400 Type A members who have an unlimited lifetime benefit
Prevention and wellness initiatives are beginning to impact the utilization curve

12. Marketing Message “Thriving” in place Peace of mind
Financial protection
Reduce burden on the next generation

13. Friends Life Care Today
Friends Life Care has >2,400 active members enrolled in the plan
400 Type A
2000 Type B
Only 38 members reside in nursing homes and assisted living facilities (34 are Type A)
More and more “second generation” members