CCRC Contract Types

Blog Category: Finance

There are several common contract types for Continuing Care Retirement Communities (CCRC). You will hear the terms ‘contracts or agreements’ and ‘fees’. These will vary between communities because they are not all financially set up the same way.

This can make comparing communities a bit complicated. It may help to use a tool like this Cost of Living Comparison Worksheet to evaluate the expenses against your own.

Common Contract Types in a CCRC

According to independent health services accreditor CARF International, the most common types of CCRC agreements are:

Type A (Extensive or Life Care)

This structure essentially allows for the pre-payment of future services. Therefore monthly fees typically see little or no increase except to cover normal operating costs and inflation adjustments.

This type of agreement includes:

  • Housing
  • Residential services and amenities
  • Access to healthcare services without a substantial increase to your fees

While the Entrance Fee and Monthly Fees may be higher than some of the other contract options, your increased need for services will not result in unpredictable added fees.

Type B (Modified)

Typically these Entrance Fees and Monthly Fees will be lower than those of Type A. These contracts allow for access to healthcare services (such as Assisted Living and Skilled Nursing) for a stated period of time without a substantial increase in monthly fees.

This type of agreement includes:

  • Housing
  • Residential services and amenities
  • Future healthcare but the payment for the cost is handled a bit differently.

For more extended services there may be discounted rates offered in comparison to facilities in the area. However, a resident will expect to see an overall increase in their monthly fee.

Type C (Fee-for-Service)

Generally assumed to have the lowest Entrance Fee and possibly monthly fees depending on the services you are accessing. While communities offering this type of contract will likely include

  • Housing
  • Residential Services
  • Amenities

The need for healthcare services will result in a change to your monthly fee. You will pay for the services you use as you need them.


Retirement communities offering a rental option forgo the collection of an Entrance Fee. They generally offer month-to-month contracts.

While you may have amenities and healthcare services offered, your access to them will likely be at market rates. In addition, they will be based on availability. Increases in monthly fees can also be expected.

Some communities will offer one or more of the options above. Get specific details about the contract type of the facility you are interested in.

Monthly and Additional Fees

It’s also important that you ask about:

  • Administrative Fees
  • Health Assessments
  • Community Fees Required for Residency

The monthly fee typically covers the community services, amenities, and conveniences that you gain from the moment you move in. Get a complete list of all services and amenities included — and not included. Then you can prepare for expenses outside of the monthly fee.

Again, contracts and fees will vary for each CCRC. Discuss all details with a community representative and even your financial advisor.

Life Enriching Communities, Inc. (LEC), is an integrated family of lifestyle communities and senior living services in greater Cincinnati. Best known for our Twin Towers and Twin Lakes senior living communities, we have made aging well a top priority for nearly 120 years.

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