CCRCs (Continuing Care Retirement Communities, also known as a LifePlan communities) generally offer up to three types of contracts (Type A, Type B, and Type C), and a good way to know the range of services and residence you can expect from a specific senior housing facility is to ask about them.
Type A Contracts: Extensive or Life-Care
Type A contracts offer the most services for residents, the cost of which is bundled into monthly and entry fees. When you move into a Type A community, you’ll know your fees won’t increase drastically when you begin to need more intensive services like assisted living or skilled nursing. This is also why Type A contracts have the highest entry and monthly fees. Residents are paying for the care they expect to need in the future.
Type B Contracts: Modified
Type B contracts offer a lower level of all-inclusive services than Type A contracts, although initially less expensive in monthly fees, entrance fees, or both. Type B communities will require an increased monthly fee and/or additional payment when the resident begins to need more medical services. In some cases, residents may have access to certain services (such as skilled nursing care for a certain amount of time), but more intensive services will not be included in the general payments.
Type C Contracts: Fee-for-Service
Generally, Type C contracts have the lowest entrance and monthly fees, if everything else (such as room size, luxury of the facility, etc.) is the same. However, residents have the burden of paying for long-term care expenses when they come about. Residents of Type C communities may not have the assurance that they will have access to more intensive medical services whenever necessary.
Which Type of CCRC Contract Should I Seek?
It can be difficult to decide which type of senior housing contract is best, especially since one of these types of communities could be more beneficial for one person than another. Someone who might soon need long-term care, for example, may want to consider residency in a Type A community, but what about someone who is years away from this? Is it better to risk the possibility of not having all the services available but save money by choosing a Type C contract? Or is it better to have the safeguard of assured services and choose a Type A contract?
This depends largely on the individual person and his or her preferences, family, medical histories, and expectations for the future. It’s best to remember that no one choice is right for every individual. Instead, start considering what options will suit your specific needs.