Certified Senior Advisor (CSA) Practice Test

Harold has a fee-for-service contract with the Continuing Care Retirement Community (CCRC) because he did not have to pay an entrance fee. In fee-for-service arrangements, residents typically pay a monthly fee and are charged separately for specific services as they are needed, rather than paying an upfront entrance fee. This type of contract allows for flexibility in managing finances, as residents might only incur costs based on their usage of services, making it particularly beneficial for those who anticipate a variable need for care over time.

In contrast, contracts like guaranteed care usually involve a comprehensive package including an upfront fee that ensures access to care regardless of future needs. Life care contracts often require significant entrance fees in exchange for unlimited access to care within the community for life, which does not apply in this case. Modified care contracts typically involve a combination of an entrance fee and limited services provided at no additional cost, which again differs from Harold's situation as he encountered no entrance fee at all.