Understanding the Differences Between Types of Continuing Care Retirement Communities (CCRCs)

May 15, 2025

As you or your loved ones begin exploring retirement living options, one important concept to understand is the Continuing Care Retirement Community (CCRC)—also known as a Life Plan Community. These communities are designed to support older adults as they age, offering peace of mind, lifelong care, and vibrant living on a single campus.

But not all CCRCs are created equal.

There are three primary types of contracts offered by CCRCs: Type A (Life Care), Type B (Modified), and Type C (Fee-for-Service). At Emerald Heights in Redmond and Heron’s Key in Gig Harbor, we offer Type A Life Care contracts, the most comprehensive and predictable option.

Let’s explore the differences between each contract type so you can make an informed choice for your future.

Type A: Life Care (Offered at Emerald Heights and Heron’s Key)

What is it?
Type A is the most all-inclusive CCRC contract. Residents pay a one-time entrance fee and a consistent monthly service fee that covers most future health care needs—no matter how those needs change.

Key Benefits of Type A:

• Predictable Costs: Your monthly service fee remains stable even if you transition to assisted living, memory care, or skilled nursing.
• Onsite Care: Seamless access to all levels of care without leaving your community.
• Tax Advantages: A portion (about 30–36%) of your entrance fee may be deductible as a prepaid medical expense.*
• Low Second Occupant Fees: Great for couples—even if each requires a different level of care.
• Lifelong Security: You’ll never be asked to leave due to rising healthcare costs.

Type A Life Plan Communities like Emerald Heights and Heron’s Key are ideal for those seeking long-term financial protection and a plan for the future.

🏡 Explore Emerald Heights – Life Plan Community in Redmond, WA
🌊 Discover Heron’s Key – Senior Living in Gig Harbor, WA

Type B: Modified Plan

What is it?
Type B contracts offer some of the benefits of Type A but with limits. You may receive a discounted rate for a defined period if you need care—but once that period ends, you’ll pay market rates.

Considerations:

• Lower entrance fees than Type A.
• Limited or discounted healthcare included.
• Couples may incur separate full fees if they need different levels of care.
• Health services may be offsite.
• Refundable entrance fees may be available—but are often contingent on resale of the residence.

This model may appeal to individuals seeking lower up-front costs but still want a degree of protection.

Type C: Fee-for-Service

What is it?
Type C is the most flexible—and potentially riskiest—option. You’ll pay a lower entrance fee and monthly service fee while living independently, but when care is needed, you’ll pay full market rates for assisted living, memory care, or skilled nursing.

Best For:

• Individuals confident in covering future healthcare expenses out-of-pocket.
• Those with robust long-term care insurance.

While the initial costs are lower, future care could become significantly more expensive.

Choosing the Right Life Plan Community in Washington State

In Washington, roughly:

• 1/3 of CCRCs offer Type A Life Care contracts.
• 1/4 offer Type B.
• The rest are Type C Fee-for-Service models.

If peace of mind, cost predictability, and onsite access to multiple levels of care matter most to you, a Type A community like Emerald Heights or Heron’s Key may be your best fit.

Why Emerald Heights and Heron’s Key Stand Out

Both Emerald Heights and Heron’s Key are Type A Life Plan Communities in Washington State offering:

• A vibrant lifestyle for active seniors.
• Access to onsite healthcare, including memory care and skilled nursing.
• Strong resident communities and lifelong friendships.
• Financial confidence and long-term security.

Whether you’re drawn to the natural beauty of Redmond or the scenic waterfront in Gig Harbor, our communities help you plan confidently for the future—without sacrificing the joy of today.