What Is a CCRC?

If you’ve started researching senior living, you’ve probably encountered a long list of terms: CCRC, Life Plan Communities, Life Care, Type A, Type B, Type C. It can be confusing, particularly because communities that appear very similar on the surface can offer very different contracts.

And those differences matter.

Choosing a retirement community isn’t only about comparing floor plans, dining options, amenities or entrance fees. It’s also important to understand what happens if your health changes five, ten or even twenty years from now.

First, What Is a CCRC?

CCRC stands for Continuing Care Retirement Community. Today, you’ll also frequently hear the term Life Plan Community used to describe the same general model.

Unlike a community focused exclusively on independent living or assisted living, a CCRC is designed to offer multiple levels of living and health care. Depending on the community, that may include independent living, assisted living, memory support, skilled nursing and rehabilitation.

Most people move to a CCRC while they are still living independently. The idea is to enjoy an active lifestyle now while already having a plan in place if additional support is needed later.

That can be particularly meaningful for couples. If one spouse eventually needs additional care while the other continues to live independently, a CCRC may allow them to remain part of the same community while each receives the appropriate level of support.

The Part Many People Don’t Realize: Not All CCRCs Are the Same

This is where comparison shopping can get complicated.

Two communities may both call themselves CCRCs or Life Plan Communities. Both may offer beautiful residences, dining, fitness programs, activities and access to health care. But the financial arrangements for that future health care can be dramatically different.

The important question isn’t simply, “Is this a CCRC?”

It’s “What type of contract does this CCRC offer?”

The three contract types you will most commonly encounter are Type A, Type B and Type C.

Type A: Life Care

A Type A CCRC, often called a Life Care Community, generally provides the most comprehensive approach to future health care costs.

Residents typically pay an entrance fee and an ongoing monthly service fee. If a resident later needs assisted living, memory support or skilled nursing, that care is provided according to the terms of the Life Care contract, generally with little or no increase in the monthly fee because of the level of care required.

Monthly service fees can still increase over time as part of normal annual adjustments. The distinction is that the resident isn’t suddenly paying the full market cost of care simply because his or her health needs have changed.

Emerald Heights is a Type A Life Care Community. Residents enter through independent living and have access to assisted living, memory support and skilled nursing if needed in the future. At Emerald Heights, moving to a higher level of care does not result in an increase to the monthly service fee based on the level of care received, other than applicable meal charges.

Type B: Modified Contract

A Type B CCRC generally includes some future health care, but not necessarily all of it.

For example, the contract might include a certain number of days in assisted living or skilled nursing, or it may provide those services at a discounted rate. Once that benefit has been used, additional charges may apply.

Because Type B contracts can vary considerably, it’s important to ask exactly what is included, for how long and what you would pay after the included benefit ends.

Type C: Fee-for-Service

A Type C CCRC typically takes a different approach. Residents may still pay an entrance fee and monthly service fee while living independently, but when additional care is needed, they generally pay the applicable cost of that care.

That can sometimes make the initial cost appear lower because less future health care is included in the contract. However, it also means future expenses are more dependent on how much care you ultimately need.

Don’t Compare Entrance Fees Alone

One of the easiest mistakes to make when comparing retirement communities is putting entrance fees side by side and assuming the community with the lower fee costs less.

The entrance fee is only one piece of the financial picture.

You also need to understand what your monthly service fee covers today and, perhaps more importantly, what you will pay if you eventually need assisted living, memory support or skilled nursing.

Refundability is another separate consideration. A refundable entrance fee does not automatically mean a community offers Life Care. A Type C community, for example, could offer a refundable entrance fee while still charging residents the applicable cost of health care when it is needed.

At Emerald Heights, residents can choose from several entrance fee options, including Traditional, 50% Refundable and 90% Refundable plans. The best fit depends on individual financial and estate-planning priorities.

The Questions Worth Asking

When visiting a CCRC, go beyond asking about the apartment, amenities and monthly fee. Ask what type of contract the community offers and what happens financially if your health needs change.

What would you pay if you needed assisted living? What about memory support or several years of skilled nursing? Is there a limit on the amount of care included? Do current residents receive priority access to health care? What happens if one spouse needs care while the other remains in independent living? And how financially stable is the organization providing that long-term commitment?

Those answers can reveal significant differences between communities that may otherwise look very similar.

Why Consider Life Care Before You Need Care?

There’s a common misconception that people move to a CCRC because they need care.

In reality, residents typically make the move while they are independent. For many, that is precisely the point.

At Emerald Heights, independent living means enjoying a maintenance-free residential home, dining, fitness and wellness opportunities, educational and social programs, outdoor spaces, resident-led committees and a community of neighbors.

Life Care is the plan for the future. Independent living is about how you want to live today. 

Choosing the Right CCRC

There is no single retirement living option that is right for everyone. What matters is understanding exactly what you are purchasing and choosing a community and contract that align with your priorities.

When comparing CCRCs, look beyond the residence and amenities. Understand the contract, health care coverage, entrance fee structure, access to care and financial stability of the organization.

Because choosing a Life Plan Community isn’t simply a decision about where you want to live next.

It’s also a decision about how you want to plan for what comes next.

Learn More About Life Care at Emerald Heights

If you’re researching CCRCs, Life Plan Communities or retirement communities in Redmond and the greater Eastside, we’re happy to help you understand the differences. Even if you’re just beginning your research, asking the right questions now can help you make a more informed decision later.

Explore Life Care at Emerald Heights, compare our contract options or schedule a visit to learn more.