Continuing Care Retirement Communities (CCRCs) Contract Types
Pricing Models at a Glance
Entrance‑Fee Models
These involve a significant upfront payment, often combined with monthly service fees. Within this model, there are different contract types:
Type A – Life Care
The most comprehensive (and costly) option.
Covers all levels of care (independent living, assisted living, skilled nursing) with minimal or no additional cost later on.
Entry fees may reach $1 million or more; monthly fees remain relatively stable.
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Type B – Modified
More affordable upfront than Type A.
Includes limited care; once that’s used up, further care is billed at discounted (but not full) rates.
Entrance fees range widely (e.g. $80,000–$750,000), with moderate monthly fees (~$1,500–$2,500).
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Type C – Fee‑for‑Service
Lowest entrance fee among entrance models.
Care is billed at market rates as it’s needed—“pay‑as‑you‑go.”
Upfront fees sometimes in the $100,000–$500,000 range; monthly fees low if healthy but can skyrocket with higher care needs.
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Refundability Terms
Entrance fees may come with different refund options:
Fully refundable (rare, higher cost)
Partially refundable (e.g., 50%–90%)
Declining refund (refund diminishes over time)
Nonrefundable
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Alternative Models without a Large Entrance Fee
Rental (or “Type D”) Contracts
No substantial entrance fee but higher monthly rates.
Access to amenities and independent living; care is add‑on at market cost.
TerraBella Senior LivingWikipedia
Equity Models
Resident buys into the property—often resellable or inheritable.
Monthly service fees still apply.
TerraBella Senior LivingFasterCapital
Summary Table
| Option | Entrance Fee | Monthly Fees | Care Coverage | Refundable? |
|---|---|---|---|---|
| Type A | Highest | Stable, moderate | All-inclusive, predictable | Often refundable, though costlier |
| Type B | Medium | Moderate; may rise with care | Some care included, then discounted | Varies (partial or declining refund) |
| Type C | Lowest among paid | Low initially; can increase | Pay‑as‑you‑go care | Depends on contract |
| Rental / Type D | None or nominal | Highest | Minimal included care | Not applicable |
| Equity Model | Investment purchase | Moderate (services) | Services for fees | Owns actual asset |
Why It Matters
Predictability & Peace of Mind: Type A contracts are often chosen by those seeking stability—they “lock in” future care costs and typically offer a refundable entrance fee, easing estate planning.
humangood.orgWealth ManagementFlexibility for the Healthy: Type B and C appeal to those confident in maintaining health; they offer lower upfront costs but shift financial risk to the future.
Canby Financial AdvisorsFasterCapitalU.S. News HealthCash Flow Control: Rentals or equity models may suit those who prefer liquidity now or an asset later.
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Final Thought
Choosing between CCRC entrance‑fee options depends on multiple factors: your current health, financial flexibility, care preferences, and plans for inheritance or estate stability.