What is a Continuing Care Retirement Community?
A Continuing Care Retirement Community (CCRC), also known as a life plan community, is a residential option for older adults that offers a complete continuum of care. Residents can transition between different levels of care—from independent living to assisted living and skilled nursing—without having to move. This ability to "age in place" is a key benefit.
CCRCs typically require an initial entrance fee and ongoing monthly fees. The costs and included care depend on the contract type.
Levels of Care in Continuing Care Communities
CCRCs provide various housing and care options:
Independent Living
For active seniors who need little to no daily assistance. This usually includes apartments, cottages, or townhouses with services like meals, housekeeping, and activities.
Assisted Living
For residents needing help with daily tasks such as bathing, dressing, and medication management. Assisted living offers 24/7 staff support in private or semi-private units.
Memory Care
A specialized, secure environment for residents with dementia, featuring trained staff and structured routines.
Skilled Nursing Care
The highest level of care, providing 24/7 medical supervision and services like rehabilitation and wound care, suitable for short-term recovery or long-term complex health needs.
CCRC Contract Types: Understanding the Financial Differences
CCRC financial contracts significantly impact long-term costs. The three main types are:
Type A: Extensive or LifeCare
Requires the highest upfront entrance fee and monthly fees. Offers unlimited access to all care levels with minimal increase in monthly fees, providing the most financial predictability.
Type B: Modified Contract
Features lower entrance and monthly fees than Type A. Includes a set number of discounted days for assisted living or skilled nursing; market rates apply afterward, offering moderate financial predictability.
Type C: Fee-for-Service Contract
Has the lowest initial fees but requires residents to pay full market rates for assisted living or skilled nursing as needed. Offers the least financial predictability but is the most affordable upfront.
CCRC Contract Comparison Table
| Feature | Type A (LifeCare) | Type B (Modified) | Type C (Fee-for-Service) |
|---|---|---|---|
| Upfront Fee | Highest | Medium | Lowest |
| Monthly Fee | Highest (Relatively Stable) | Medium (Stable for independent living, then variable) | Lowest (Increases to market rate for care) |
| Future Care Costs | No significant increase | Discounted rate for a limited period; market rate afterward | Full market rate |
| Financial Predictability | Highest | Moderate | Lowest |
| Ideal For | Those prioritizing long-term predictability and financial security | Individuals seeking a balance of lower costs and some future care protection | Those who want to manage their own care costs and prioritize low initial fees |
How to Choose the Right CCRC for You
Selecting a CCRC is a significant decision. Consider your current and future health needs, analyze your finances (potentially with a financial advisor), and visit multiple communities. Carefully review the contract with a legal professional and evaluate the amenities and services offered.
Choosing the right CCRC can provide an enriching retirement with the security of future care. For further guidance, explore resources like the AARP website.
Finding the Right Fit for Your Future
Continuing care communities are a valuable option for seniors seeking an active lifestyle with secure future health care. The ideal choice depends on individual finances, health, and preferences. Understanding the different levels of care and contract types allows for an informed decision, leading to a retirement with both excellent care and community.
