Understanding CCRC Contracts

May 30, 2018
Life plan communities offer 5 types of CCRC contracts


When deciding where to retire, more boomers are choosing life plan communities (also known as continuing care retirement communities or CCRCs) as their top choice. It’s simply convenient to have access to a continuum of care including independent living, assisted living, memory care, and skilled nursing and rehabilitation services.

As you are researching CCRCs, you are probably finding the different types of contracts that a CCRC can offer. These can be confusing for most. Keep in mind, these contracts can vary from one community to another.


Related: Lifecare vs. Fee-For Service: What’s the Difference?


Types of CCRC Contracts

Here is a break down of four different continuing care retirement community contracts.

Type A (Lifecare) Contract:

Type A contracts require a higher monthly fee and typically a higher entry fee. Paying higher fees for this contract for independent living help pay for higher levels of care (assisted living, memory care, etc.) residential services, and amenities. Essentially, the higher fees you are paying right away is prepaying for health care you may need in the future.

Type B (Modified):

Compared to a Type-A contract, Type-B requires a lower monthly fee and could include a lower entry fee. This contract could also include most if not all of the same residential services that a Type-A offers. What’s the difference? If higher levels of care are needed under a Type-B contract, the resident will be responsible for some of the cost.

Type C (fee-for-service):

Type C typically requires the lowest monthly and entry fees. Again, some or all of the services and amenities may be included. However, if you should need assisted living, skilled nursing, or memory care, the monthly fee will increase to reflect the market rate for care.


Equity and Co-op contracts require a resident to purchase real estate or have ownership in a co-op. There is no entry fee of course but a monthly service fee may be required. Higher levels of care are available on a fee-for-service basis at the full market rate or at a discount.

Which Contracts Does Kendal on Hudson Offer?

Kendal on Hudson offers two types of contracts: Full Life Care Contract and a Modified Contract. Both contracts include a Medical Component and a Residential Component. Both have identical accommodations and amenities. The difference between the two are the entry fee charges, entry fee refund calculations, and any discount for keeping a long-term care insurance policy.

Full Life Care Contract

A Full Life Care contract covers unlimited Assisted Living and Skilled Nursing at Kendal on Hudson for life.

Modified Life Care Contract

This contract is a great option for those who carry long-term care insurance. Kendal on Hudson will give a credit on the Life Care Entry Fee for using your own insurance to pay for Skilled Nursing for a defined period that usually ranges from 1 to 5 years. At the end of that period, the agreement will revert to fully covered Skilled Nursing care.

You can read more about the contracts that Kendal on Hudson offers by downloading our brochure.

Lifecare at Kendal on Hudson

Kendal on Hudson is a Life Plan Community and offers a full continuum of care with stable monthly fees. For more on what Lifecare is, what services and amenities are included, and monthly fee examples, download our Lifecare booklet.

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