Types of Continuing Care Retirement Community Contracts

CCRC contractsAmong the many options of housing and care available to older adults, continuing care retirement community (also known as a CCRC, or Lifecare community) is one of the most popular choices.

In a CCRC, residents pay a one-time entrance fee and monthly service fees for lifetime priority access to on-site assisted living, memory care and skilled nursing services at no additional cost. The fees depend on their contract.

There are five types of CCRC contract types. These contracts can vary from one community to another and may not all be offered at each community—though it is not uncommon for a Lifecare community to offer more than one of these contracts. To help you on your search, here is an explanation of each type of CCRC contract.

1. Type-A (Lifecare)

A Type-A contract requires the highest monthly fee for residents living independently and could also have a higher entry fee. Depending on the community, the balance in paying higher fees for independent living is that the residential services, amenities and higher levels of care services (such as assisted living or skilled nursing) are provided with little or no increase in monthly fees. Basically, the resident with the Type-A Lifecare contract is prepaying for health care services that may be needed in the future.

2. Type-B (Modified)

In comparison to the Type-A contract, a Type-B contract requires a lower monthly fee and possibly a lower entry fee. Type-B contracts may also include almost all of the same residential services that a Type-A offers. The difference is if higher levels of care is needed, the resident will be responsible for some of the cost.

3. Type-C (Fee-for-Service)

Compared to the Type-A and Type-B contracts, a Type-C contract would provide the lowest monthly fees and possibly the lowest entry fee. However, if assisted living or skilled nursing is required in the future, the resident’s monthly fees will likely increase to reflect the market rate of care. Some or all of the residential services and amenities may be included.

4. Rental

A rental contract may require no entry fee or a small “community fee.” These contracts typically include a month-to-month fee which may be higher than what you would pay for an entry fee with a Type-A or Type-B contract. As with a Type-C contract, you will pay the full market rate for healthcare. However, residents under this contract might have priority access to the healthcare facility as opposed to guaranteed access.

5. Equity/Co-Op

This type of contract involves a purchase of real estate or ownership in a co-op. An entry fee is typically not required since the home is purchased, but a monthly service fee is still required. Higher levels of health care are available on a fee-for-service basis at the full market rate or at a discount.

The Admiral at the Lake Contracts

The Admiral at the Lake offers three types of Type-A contracts:

  • Plan A (90% Refundable Plan): All services, amenities and levels of health care are available to residents. This plan includes a 90% refund of entry fee upon termination of residency at The Admiral at the Lake.
  • Plan B (50% Refundable Plan): All services, amenities and levels of health care are available to residents. This plan includes a 50% refund of entry fee upon termination of residency at The Admiral at the Lake.
  • Plan C (Traditional Amortizing Plan): All services, amenities and all levels of health care are available to residents. This plan does not include a refund of the entry fee.

Keep in mind, this is just a brief overview of the contracts that The Admiral at the Lake offers. Our sales counselors are always happy to make an appointment with you to discuss if The Admiral at the Lake is right for you and advise you on which contract is the better fit for your needs.

To learn more about The Admiral at the Lake, you can request a brochure or call 773-433-1800 to schedule an appointment to meet with a representative.

Choose The Admiral at the Lake with confidence. We welcome you to take a closer look at our financial information and compliance policies.