Optimal Capital Group Insurance Services, in cooperation with several A.M. Best highly rated insurance companies, has developed an innovative program which insures entrance fee refunds from 30 to 90 percent, providing residents with a tax-beneficial way to leave this valuable asset to the beneficiary of their choice and aiding communities in the removal of their refundable entrance fee repayment liability.
In 2010, the Financial Accounting Standards Board ("FASB") published a Financial Accounting Series Accounting Standards Update (Topic 954) in regards to Health Care Entities. In Topic 954, FASB clarified that a Continuing Care Retirement Community ("CCRC") should classify the refundable entrance fee as deferred revenue only when its resident contract provides for repayment of the fee upon re-occupancy, the repayment is limited to the proceeds received from the new occupant, and the entity's policy and practice is to enforce the refund limitation. Otherwise, the entrance fee is classified as a liability. With this topic in mind, the Insured Refund Program was originally created to help CCRCs remove this refundable entrance fee repayment liability off their accounting filings.
To learn more about the Insured Refund Program for Continuing Care Retirement Communities, click the link below.More Details