What’s the difference between a CCRC and a Lifecare community?

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New Pond Village

Posted on

Aug 30, 2022

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Massachusetts - Boston Metro West

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What is a CCRC? What defines a Lifecare community? Is there a difference? In this article, you will learn about the available contract types at CCRCs so you can make an educated decision about the
type of community that’s best for you. 


CCRCs—also referred to as continuing care retirement communities or Life Plan communities—offer a secure pathway for aging and future healthcare needs and eliminate the need for a disruptive move if you ever need a higher level of care. Residents typically enter these communities as independent living residents and enjoy access to continuing on-site healthcare, including assisted living and memory care, should the need for such services arise.


There are three types of care contracts available at CCRCs (Type A, Type B and Type C), all offering different levels of care coverage.


1.     Type A Contract: Lifecare

Type A Lifecare contracts include coverage of all potential care costs as part of the initial contract, which includes housing, services, and amenities.  All Lifecare communities are CCRCs, but not all CCRCs offer a Lifecare contractA
 Lifecare contract requires an entrance fee but ensures predictable monthly fees regardless of your care needs. Plus, couples with a Lifecare contract can occupy two residences on the same campus but only pay one monthly fee.

Those who opt for Lifecare know they can count on high-quality care available at predictable rates for the rest of their lives. Generally, Lifecare residents pay far less for these services than they would on the open market as part of a smart
financial plan to protect themselves and their estate from the ever-increasing costs of long-term care.



2.     Type B Contract: Modified Care

Type B Modified Care Contracts offer lower upfront deposits and monthly fees but also have limitations on covered long-term care services. Healthcare is typically provided in one of two ways:


         1.     A limited number of free days included as part of the entrance fee, with additional care billed at per diem market rates

        2.     An ongoing, minimally discounted rate Healthcare services may be delivered on or off site, and two monthly fees may be incurred if couples require different levels of care.

   3.     Type C Contract: Fee-for-Service Care

       With a Type C Fee-for-Service Contract, access to long-term care, while typically guaranteed, is charged at market rates. If a resident requires care on a short-term basis, to maintain their independent living residence,      that resident would be required to pay the monthly fee on the independent living residence plus the costs of housing and healthcare received in assisted living, memory care or skilled nursing. While there’s no upfront expense under this plan, the market costs of care can rapidly exceed the amount of an upfront entrance fee without the benefits of pre-arranged long-term care costs.


Making a Decision

So which CCRC contract is the best? There’s no one right answer for everyone. It comes down to making the decision that you’re comfortable with after considering things like your family history regarding life expectancy and health in addition to knowledge about the different types of CCRCs.
 

Contributing
Writer — Adam Manchester, Executive Director, New Pond Village amanchester@benchmarkquality.com 508-660-1555

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Assisted Living 170 Main Street, Walpole, Massachusetts, 02081

New Pond Village is a continuing care community that offers licensed assisted and memory care as part of the Lifecare Program. Seniors seeking assisted living or memory care can opt to move directly to higher levels of care on a month to month rental basis. New Pond Village has modern apartments and exceptional amenities in our brand new residential care community. We also offer independent living.