Common Contracts
Life Care
Common Contract Types
When comparing CCRCs and other types of senior living communities, you will likely encounter two kinds of contracts: Life Care Type A and Continuing Care, also known as Type B.
It’s important to understand the difference between these contract types so that you can make the right choice for you:
Life Care Type A
Only a handful of CCRC’s offer Life Care Type A contracts that provide a continuum of care for life at the same community. That continuum includes independent living, assisted living services (help with dressing, bathing, meals, and more), long-term skilled nursing, and/or short-term therapy and memory care.
Life Care Type A contracts guarantee lifetime access to these services and care regardless of the person or couple’s financial situation. Life Care contracts do require an entrance fee, but offer relatively stable monthly fees with only small adjustments for cost of living/inflation increases, regardless of the level of care.
Continuing Care Type B
These contracts typically require higher entrance fees. With Continuing Care (Type B) contracts, monthly fees may increase with the level of care. Continuing Care contracts are extremely varied, so be sure to look at the contract language carefully.
While some communities may claim to offer Life Care, that may not always be the case. True Life Care Type A communities must adhere to much stricter federal requirements than other senior communities, and must be listed by the California Department of Social Services (CDSS). Be sure to ask any community that claims to offer Life Care whether they are listed with the CDSS a Type A Life Care Community, and ask to see proof.
Comparing Contracts
Here you will find an at-a-glance comparison of the features offered by Life Care Type A and Continuing Care (Type B) contracts.
CONTRACT TYPE
Life Care Type A
ENTRY FEE
Yes
MONTHLY FEE
Predictable lifetime costs*
CARE COVERED
Guaranteed lifetime coverage for:
✓ Assisted living
✓ Memory care
✓ Long-term skilled nursing care
CONTRACT TYPE
Continuing Care Type B
ENTRY FEE
Yes
MONTHLY FEE
Costs increase with higher levels of care*
CARE COVERED
May be offered:
+ Assisted living
+ Memory care
+ Long-term skilled nursing care
*Monthly fees may be adjusted to accommodate increases in cost of living and inflation.
Why Choose a Life Care Type A Contract
There are multiple advantages to choosing a senior living community that offers a Life Care Type A contract, including:
Your long-term care needs are provided in the same community, so you won’t have to move off property.
You’ll have access to an array of activities designed to help people thrive emotionally, intellectually, spiritually, and physically at each level of care.
You will continue to receive the care and services you need for life, regardless of changes in your health and level of care.
Couples can remain in the same community, even should one spouse need a different level of care.
Many Life Care Type A contracts cover care that Medicare and health insurance plans don’t cover, including long-term skilled nursing and memory care as well as housing. Compare your
options to make sure you’re covered for every season of life.
When deciding which type of contract is right for you, make sure you’re asking the right questions. Click here for a list of questions to help you determine if a Life Care Type A contract meets your needs.
We’re Here to Help
We understand that choosing the right senior living community isn’t always simple. We’re here to help make it easier, with information, guidance, and peace of mind. If you have any questions about Continuing Care Retirement Communities, Life Care contracts, or long-term care, please don’t hesitate to contact us today.
