Types of CCRC Contracts
Also known as a life care contract, this contract option can also be considered all-inclusive, as it provides the highest level of insurance of all the CCRC contract options.
Every contract varies, but typically this means that the contract includes housing, a meal plan (generally the equivalent of one meal per day), inside and outside maintenance services, access to programs and activities, and, importantly, includes unlimited use of the health care services, without an increase in the monthly fee (with the exception of the two additional meals when in health care). Many of these contracts also offer refundability, which means a portion (50-90%) of your original one-time entrance fee is refunded to you or your estate, once the resident has left the community and the unit is resold.
RiverWoods Exeter and RiverWoods Durham offer Type A contracts.
A Type B community will look very similar to a Type A — the real difference is in the contract coverage. Type B contracts provide a defined level of insurance to their residents. Typically, this means that a Type B entrance fee and monthly service fee will be lower than a similar Type A. When a resident moves to health care, then the monthly service fee increases, based on the level of care they receive. However, the rate the resident pays is discounted from the market rate.
The benefit of a Type B contract for a resident is that they get a discount off health care, and don’t pay for care unless they are receiving it. Type B contracts also offer refundable options.
Birch Hill has recently pioneered a brand new contract option that is the first of its kind in New England. It is a 70% refundable plan, but residents have the option of accessing their 70% refundable portion during their lifetime to cover health care costs. This provides increased value for couples, greater predictability of cash flow, and increased flexibility.
I’d like to know more about Birch Hill’s innovative Type B contract. Please have a Birch Hill Marketing Counselor contact me!
This contract option is often referred to as a fee-for-service model, and many of the for-profit companies are in this space. These contracts often do not require an entrance fee, have the lowest monthly service fees, and can sometimes be rented month to month. However, there is no guarantee of health care services if and when they are needed, and residents will pay market rate for the care they receive.