If you are researching senior living for yourself or someone you love, you may have encountered the terms CCRC, Life Plan Community and Life Care Community. They sound similar, but they do not always mean the same thing.
Understanding the difference is important because the type of community and contract you choose can affect where you live, how you receive future care and what you may pay if your health needs change.
At Emerald Heights in Redmond, Washington, we believe informed planning starts with asking the right questions. This guide explains what a CCRC is, how it differs from a typical senior living community and how to compare the different types of CCRC contracts.
What does CCRC stand for?
CCRC stands for Continuing Care Retirement Community.
A CCRC, also commonly called a Life Plan Community, is a senior living community designed to provide multiple levels of living and health care within one community.
Depending on the community, that continuum may include:
- Independent living
- Assisted living
- Memory support
- Skilled nursing
- Rehabilitation services
The idea is simple: you can move to the community while you are independent and have access to additional care if your health needs change over time.
Instead of making separate housing and care decisions at different stages of aging, a CCRC allows you to plan for those possibilities in advance.
Is a CCRC the same as a Life Plan Community?
Generally, yes.
Life Plan Community is the newer consumer-facing term for a Continuing Care Retirement Community, or CCRC.
Both terms describe a community offering a continuum of living and care.
However, there is an important distinction:
Life Plan Community or CCRC describes the community model. Life Care describes a particular type of CCRC contract.
That means a community can be a CCRC or Life Plan Community without offering a Life Care contract.
What is the difference between a CCRC and a typical senior living community?
One of the biggest differences is planning for future care.
A traditional independent living community may provide housing, dining, amenities, activities and maintenance-free living but may not contractually provide access to long-term care.
An assisted living or memory care community, meanwhile, is generally designed for someone who already needs that particular level of support.
A CCRC is different because residents typically enter while living independently and have access to a continuum of care if their needs change.
This can be particularly important for couples. If one person eventually needs a higher level of care while the other remains independent, a CCRC may allow both partners to remain within the same community.
Are all CCRCs the same?
No. This is one of the most important things to understand when comparing retirement communities.
Two communities may both describe themselves as CCRCs or Life Plan Communities while offering very different financial arrangements for future health care.
The contract is what tells you how your future care is paid for.
The three CCRC contract types consumers most commonly encounter are Type A, Type B and Type C.
What is a Type A CCRC?
A Type A CCRC, commonly called a Life Care Community, generally offers the most comprehensive approach to future health care costs.
Residents typically pay an entrance fee and an ongoing monthly service fee. In return, the Life Care contract provides access to higher levels of care with little or no increase in the monthly fee because of the level of care required.
This can make future long-term care expenses more predictable.
At Emerald Heights
Emerald Heights is a Type A Life Care Community.
Residents enter Emerald Heights through independent living. If they later need assisted living, memory support or skilled nursing, that care is available through the community under the terms of the Life Care contract.
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.
The monthly service fee itself can still change over time due to normal annual adjustments, so Life Care should not be confused with a permanently fixed monthly fee.
What is a Type B CCRC?
A Type B CCRC is often called a Modified Contract community.
Residents generally pay an entrance fee and monthly service fee, but future health care is only partially included.
For example, a Type B contract might provide a certain number of days of assisted living or skilled nursing at no additional charge, or it might provide care at a discounted rate.
After the included benefit is exhausted, the resident may begin paying additional charges for care.
Because Type B contracts vary significantly, ask exactly how much care is included, for how long and what happens financially when that benefit ends.
What is a Type C CCRC?
A Type C CCRC is generally referred to as a Fee-for-Service community.
Residents may still pay an entrance fee and monthly service fee for independent living, but if assisted living, memory care or skilled nursing becomes necessary, the resident generally pays the applicable cost of that care.
The initial cost may sometimes appear lower than a Life Care contract because less future health care is prepaid.
However, the resident assumes more of the financial risk associated with future long-term care needs.
Type A vs. Type B vs. Type C CCRC: What is the difference?
| Contract Type | Common Name | Future Care Structure | Financial Predictability |
| Type A | Life Care | Extensive future care is included under the contract, generally with little or no increase based on level of care | Designed for greater predictability |
| Type B | Modified | A limited amount or discounted level of future care is included | Some future care costs remain |
| Type C | Fee-for-Service | Residents generally pay the applicable cost of care when needed | Future care expenses depend more heavily on care needs |
The entrance fee alone does not tell you which community costs more over your lifetime.
When comparing CCRCs, it is important to understand what you receive in exchange for the entrance fee and monthly fee and what happens financially if you eventually require care.
Does every CCRC charge an entrance fee?
Many CCRCs charge an entrance fee, but contract structures vary.
You may also encounter rental communities, equity or cooperative models and other arrangements.
This is why it is important not to compare senior living communities solely by looking at the initial entrance fee or monthly payment.
Ask what the contract provides over the long term.
What is a CCRC entrance fee?
An entrance fee is a one-time payment made when entering many Life Plan Communities.
Depending on the community and contract, the entrance fee can help support your residence, community amenities, services and access to future care.
Entrance fees may also have different refund structures.
At Emerald Heights, residents can choose among several entrance fee options, including Traditional, 50% Refundable and 90% Refundable plans.
The right structure depends on your financial goals, estate-planning priorities and personal circumstances.
Does a refundable entrance fee mean the CCRC is Type A?
No.
Refundability and health care coverage are two different parts of a CCRC contract.
For example, a community might offer a refundable entrance fee while still operating under a Type C fee-for-service health care contract.
When comparing communities, ask two separate questions:
What happens to my entrance fee?
and
What will I pay if I need assisted living, memory care or skilled nursing?
Those answers can tell you much more than the entrance fee alone.
How is a Life Care Community different from aging at home?
Remaining in your current home may initially seem like the simplest option. But aging at home can require families to coordinate housing maintenance, transportation, social opportunities, home care and eventually more complex health care services.
A Life Care Community takes a different approach.
You make many of those decisions before a health crisis occurs.
You can enjoy independent living today while knowing where future care will be provided, who will provide it and how your contract addresses its cost.
For many people, the value is not simply access to care. It is having a plan.
What should I ask when comparing CCRCs?
Do not stop at asking, “Are you a CCRC?”
Ask:
- What type of CCRC contract do you offer: Type A, Type B or Type C?
- What happens to my monthly fee if I need assisted living?
- What happens if I need memory care?
- What happens if I need skilled nursing care for several years?
- Is there a limit on the number of days of care included in my contract?
- Do residents receive priority access to higher levels of care?
- Are all levels of care located on the same campus?
- What additional charges apply when I receive care?
- What happens if my spouse needs care but I remain in independent living?
- Is the entrance fee refundable, and under what circumstances?
- How financially stable is the organization?
- What happens if I outlive my financial resources?
The answers can reveal substantial differences between communities that may look very similar at first.
What type of CCRC is Emerald Heights?
Emerald Heights is a nonprofit Type A Life Care Community in Redmond, Washington.
Residents begin with an active, independent lifestyle on our 38-acre campus while having lifetime access to a continuum of care that includes assisted living, memory support and skilled nursing.
Our Type A Life Care contract is designed to provide greater predictability if health needs change. Residents do not experience an increase in their monthly service fee simply because they move to a higher level of care, other than applicable meal charges.
For couples, this model can be especially valuable. If one partner needs additional care, both can remain part of the Emerald Heights community while receiving the level of support appropriate for each person.
Why do people choose a Life Care Community before they need care?
One of the misconceptions about CCRCs is that people move because they need care.In reality, people typically enter a Life Care Community while they are living independently.
The goal is not simply to prepare for what might happen later. It is also to enjoy life now.
At Emerald Heights, independent living includes a maintenance-free residential home, dining, fitness and wellness opportunities, social and educational programs, resident-led committees, outdoor spaces and a community of neighbors.
Life Care is there for the future.
Independent living is about how you want to live today.
Is a CCRC right for me?
There is no single senior living option that is right for everyone.
A CCRC may be worth exploring if you value an active independent lifestyle today while also wanting a defined plan for future health care.
The most important step is to compare communities carefully.
Look beyond the residence, amenities and entrance fee. Ask about the organization’s contract, health care coverage, financial stability, access to care and what would happen if your needs changed five, ten or twenty years from now.
Because when you choose a Life Plan Community, you aren’t only choosing where you want to live.
You’re also choosing 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, our team can help you understand your options.
We welcome your questions, even if you are just beginning your research.
Explore Life Care at Emerald Heights, compare our contract options or schedule a visit to learn how planning for tomorrow can give you greater freedom to enjoy today.
