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:
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Type A – Life Care
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The most comprehensive (and costly) option.
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Covers all levels of care (independent living, assisted living, skilled nursing) with minimal or no additional cost later on.
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Entry fees may reach $1 million or more; monthly fees remain relatively stable.
U.S. News HealthCanby Financial AdvisorsWealth ManagementSeniorly
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Type B – Modified
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More affordable upfront than Type A.
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Includes limited care; once that’s used up, further care is billed at discounted (but not full) rates.
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Entrance fees range widely (e.g. $80,000–$750,000), with moderate monthly fees (~$1,500–$2,500).
Canby Financial AdvisorsFasterCapitalU.S. News Health
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Type C – Fee‑for‑Service
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Lowest entrance fee among entrance models.
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Care is billed at market rates as it’s needed—“pay‑as‑you‑go.”
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Upfront fees sometimes in the $100,000–$500,000 range; monthly fees low if healthy but can skyrocket with higher care needs.
Canby Financial AdvisorsFasterCapitalU.S. News Health
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Refundability Terms
Entrance fees may come with different refund options:
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Fully refundable (rare, higher cost)
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Partially refundable (e.g., 50%–90%)
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Declining refund (refund diminishes over time)
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Nonrefundable
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Alternative Models without a Large Entrance Fee
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Rental (or “Type D”) Contracts
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No substantial entrance fee but higher monthly rates.
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Access to amenities and independent living; care is add‑on at market cost.
TerraBella Senior LivingWikipedia
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Equity Models
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Resident buys into the property—often resellable or inheritable.
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Monthly service fees still apply.
TerraBella Senior LivingFasterCapital
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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
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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 Management -
Flexibility 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 Health -
Cash Flow Control: Rentals or equity models may suit those who prefer liquidity now or an asset later.
TerraBella Senior LivingFasterCapital
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.