The Different Types of Life Plan Communities and CCRCs

Happy senior

You may be familiar with the term “CCRC” or “continuing care retirement community.” It generally refers to a type of senior living community where older adults can age in place. Typically, you join the community as an independent living resident and live in an apartment home or other type of residence, such as a townhouse, cottage, villa or duplex. Maintenance and housekeeping are included, a certain number of meals are provided, and a wide variety of classes, programs and activities are offered. At Sedgebrook, for example, you’ll find everything from aquarobics and bridge club to line dancing and woodworking.

In addition, a CCRC offers progressive levels of care on-site. The continuum varies from one community to the next, but generally care levels include assisted living, memory care, skilled nursing and rehabilitation.

Residents find it reassuring that care is available should the need arise. Additionally, spouses can live on the same campus and receive different levels of care steps away from each other. In either case, residents find comfort in the fact that, whatever happens, they’ll be among friends in familiar surroundings. Plus, their children don’t have to worry about them. They know their parents are safe, secure and well taken care of.

What’s the Difference between a CCRC and a Life Plan Community?

A “Life Plan Community” and a “CCRC” are the same thing. The term “Life Plan Community” has been adopted by many CCRCs to appeal to a new generation of residents who come into the community as younger seniors not needing care. They’re healthy, active, and looking for a community where they can live life to the fullest … with a plan that allows them to do that no matter what level of living they’re in at the community.

Financial Components of a Life Plan Community

There are two financial components with most Life Plan Communities:

  • The Entrance Fee (sometimes called an Admission Payment). An upfront, one-time fee that can range anywhere from $100,000 to a $1 million. Many people use the equity in their home to fund the entrance fee. A portion of the entrance fee may be refundable.
  • The Monthly Service Fee. A monthly service fee covers the services and amenities associated with living at the community. The amount you pay depends on the size of your residence, how many people live there, and the range of services and amenities available to you. When comparing the monthly costs of living at home to those at a Life Plan Community, many people find they spend less at a community like Sedgebrook.

Understanding Contracts

How you pay for health services depends on the type of contract you sign. There are three main types of contracts or residency agreements offered by Life Plan Communities: Type A, Type B and Type C.

Type A, Life Care: This type of contract promises to care for residents for the rest of their lives without significantly increasing their monthly fees. If the need arises for a higher level of care, the resident may transfer to the appropriate level of care at a predetermined, substantially discounted monthly rate for as long as care is needed.

Type B, Modified Plan: This type of contract offers priority access to higher levels of living at: 1) a minimally discounted rate, or 2) for a limited number of free days, with additional care at per diem market rates.

Type C, Fee-for-Service: This type of contract offers priority access to higher levels of care at fee-for-service market rates. Essentially, you begin a separate contract for assisted living, memory care or skilled nursing. Sedgebrook offers a fee-for-service contract.

Some Life Plan Communities may offer a rental contract as an alternative to entrance fee financial plans.

Rental: Rental contracts require no entrance fee or perhaps a nominal community fee. However, the monthly service fee may be higher than you’d pay in a comparable entrance fee community. If at some point you require a higher level of care, such as assisted living or skilled nursing, you’ll pay the full market rate. That’s assuming a place is available when you need it. There are no guarantees with a rental contract.

Questions? We Can Provide the Answers You Need

Having a plan for potential health care needs can take a weight off your mind. Instead of worrying about where you’ll get the care you may need and how much it will cost, you can make the most of each day doing what brings you joy and fulfillment. To help you better understand contract options at Sedgebrook and how they compare to other Life Plan Communities, get in touch. We’re always happy to answer your questions.