Senior Living Contracts Explained. What You Need to Know.

As you start researching senior living communities in Connecticut, you’ll quickly discover there are different terms to describe your options like: Life Plan Community, Continuing Care Retirement Community (CCRC), independent living and so on. What really matters is the contract that determines your peace of mind and financial security.

Senior Living Contract Comparison: Know Your ABCs

There are several types of retirement community contracts. Here’s a breakdown of the common CCRC contract types that typically cover services, amenities, and future care. As you review these options, keep in mind that according to the Department of Health and Human Services, 7 out of 10 adults will need long-term care at some point, for an average of 3 years.

Type A (also referred to as Life Care)

With Life Care, you pay an entrance fee — often partially refundable to you or your estate — and a monthly service fee. Type A contracts provide priority access to all levels of care the community offers at predictable, below-market rates. If you or your spouse need different levels of care, you’ll often pay just one monthly fee plus the cost of any additional meals needed.

Type B (also called Modified Plan)

A Type B contract includes housing, services, and amenities. Just like a Type A community, you’ll pay a one-time entrance fee and a monthly service fee. However, the care structure is very different. As part of your entrance fee, you may receive care in one of two ways: a limited number of free days of health care, with additional days billed at per-diem market rates, or an ongoing, minimally discounted rate. If you and your spouse need different levels of care, you may end up paying two monthly service fees to cover those two different care levels.

Fairview has been a Type B CCRC since 2014, and Vista Point at Fairview will continue this tradition because we believe it offers the best blend of value, service, and amenities.

Type C (also known as Fee-for-Service)

Housing and services are provided, and the entrance fee and monthly service fee tend to be much lower than with the other two contract types. You may have access to care, but it will be charged at market rates, which are typically much higher than under a Type A or B contract. If you live in independent living but temporarily need care, you may be required to pay your monthly service fee for your independent living residence plus the costs of housing and the health care you receive.

Rental

Not all communities require an entrance fee — rental communities charge rent by the month. Some rental communities may have year-long leases, while others may offer month-to-month agreements. People who choose rentals may prefer the flexibility; however, rental monthly service fees may be higher than those in comparable entrance-fee communities.

Many rental contracts don’t offer on-site care or provide priority access to health care services. If you ever do need care, you’ll have to pay full market rates while also covering your monthly rent.

Knowledge is Power

Want to learn more about how the community and contract you choose can impact your future? Or about the only nonprofit Life Plan Community in Southeastern Connecticut — Vista Point at Fairview — that combines a vibrant lifestyle with breathtaking waterfront views? Call (860) 968-VIEW (8439) or contact us here.