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The Different Types of Lifecare Contracts

According to the Administration for Community Living, someone turning 65 has a 70% chance of needing advanced health care services for an average of at least two years.

When thinking about senior living and higher levels of care, it is important to understand what level of care communities offer. A Continuing Care Retirement Community or CCRC might offer residency contract types to potential seniors or loved ones interested in moving into senior living. Another common name for a CCRC is Life Plan or Lifecare Community. 

Contracts in these senior living communities always require a one-time entrance fee. With a Lifecare community like The Estates at Carpenters, if you must leave the community for any reason, a portion of your entrance fee will be refundable to you or your estate. The cost of the entrance fee is determined by the number of residents, size of the room or residence, and care contract type. Entrance fees may be a tax deduction in the first year of your residency, so it’s recommended you speak with your financial advisor.

With a Lifecare community like The Estates at Carpenters, if you must leave the community for any reason, a portion of your entrance fee will be refundable to you or your heirs. 

Contract types are different from one another in terms of how much you’ll pay for types of care beyond independent living. How and when you pay for additional care services varies on community and contract type.

Keep reading to learn about CCRC contract types.

Type A Lifecare Contract

This plan is known as a Lifecare contract and provides a full suite of care services.

A Type A plan offers Lifecare contracts with numerous benefits. You can count on a stable monthly fee with little to no increase. And the move-in deposit secures your new home … for life! That entrance fee pays residents’ utilities, services and amenities, maintenance, dining, activities and scheduled transportation. 

Types of care include assisted living, skilled nursing care or short- and long-term rehabilitation for the life of the resident. These are covered by the entrance fee for a lifecare community like The Estates at Carpenters, which may be deductible as a prepaid medical expense the first year a resident moves in. If a resident’s independent living needs ever change, they needn’t leave the community for higher levels of care.

Lifecare contracts give families and residents total financial security. Residents are guaranteed access to any required type of care at the same monthly rate they pay for independent living in the community. 

Type B Modified Contract

Type B contracts typically ask for a monthly service fee that changes depending on what care services are required that month. Care services might be offered at a discounted rate, distinguishing the Type B Modified Contract from A or C Contracts.

Also known as a Modified CCRC plan, they often include skilled nursing, assisted living and memory care at a discounted rate. In general, their focus on wellness means that they have many services and amenities in common with Type A contracts.

Type C Fee-for-Service Contract

Fee-for-Service contracts, also known as Type C contracts, ask for the lowest monthly rates and entrance fees. The entrance fee may also be tax deductible for a Type C Contract.

However, a Type C plan does not does not include any costs or discounts associated with memory care, skilled nursing, or assisted living. If such services are required, residents will be charged the full market rate. If any higher levels of care beyond independent living are necessary, the monthly rate will increase. Usually, it boasts some of the same amenities and services as Type A or B communities.

About The Estates at Carpenters

The Estates at Carpenters is a Lifecare Community offering worry-free independent living, assisted living and high-quality skilled nursing care and rehabilitation. For over 35 years, The Estates has provided older adults in the area with an active, engaging lifestyle filled with abundant choices and amenities and services that make life easier. The Estates at Carpenters offers a lifestyle that is designed to keep older adults healthy and well today – and tomorrow.

For more information on The Estates or to RSVP to an upcoming event, contact Jeanie at 863-279-4503 or schedule a tour.

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