When exploring senior living options, you may come across the term “life plan community,” formerly called a “continuing care retirement community” or “CCRC.” These communities offer a continuum of care that adapts as your needs change, providing peace of mind for both residents and families. Life plan communities can be structured differently, fitting into one of three distinct types of life plan communities.
The main difference between the various types of life plan communities lies in how they handle costs and contracts, commonly known as Type A, Type B, and Type C communities. Understanding these distinctions can help you make an informed and confident decision.
What Are Life Plan Communities?
A life plan community combines independent living with access to higher levels of care, such as assisted living, memory support, or skilled nursing, on the same campus. Residents typically pay an entrance fee and a monthly fee, which vary depending on the contract type and service level.
At Clermont Park, residents enjoy the benefits of a vibrant community lifestyle backed by the security of on-site health services. As the only Type B life plan community in the city of Denver, Clermont Park offers flexibility that balances financial predictability with long-term peace of mind. According to the U.S. Administration for Community Living, planning for long-term care is an important step in maintaining independence and ensuring financial stability later in life.
Understanding the Different Types of Life Plan Communities
Type A: Life Care Contracts
Type A, or “life care,” contracts offer the highest level of financial predictability. Residents pay a larger upfront entrance fee and a consistent monthly fee that remains relatively stable, even if they later need assisted living, skilled nursing, or memory support.
Key features include:
- Highest entrance fee
- Most predictable long-term costs
- Includes access to multiple levels of care at little or no increase in monthly fees
- Appeals to individuals seeking long-term cost stability and maximum assurance
This type of community may be best for seniors who want to plan for future healthcare costs in advance and are comfortable paying a higher upfront cost for lifelong security.
Type B: Modified Life Care (Clermont Park’s Model)
Type B, or “modified life care,” offers a middle ground between flexibility and financial security. Residents pay a lower entrance fee than a Type A community and enjoy a discounted rate from the standard per-diem rate for higher levels of care.
Key features include:
- Lower entrance fee than Type A
- Access to higher care levels at reduced rates
- Respite days for a higher level of care – per year, per person – at no additional charge while you are in residential living (Clermont Park offers 10 respite days per year)
- Combines flexibility and value
At Clermont Park, residents can choose between:
- A 90% refundable entrance fee, offering significant estate protection
- A 50% refundable entrance fee, which lowers upfront costs while preserving some refundability
- A fully declining entrance fee, which offers the lowest entrance fee but is not refundable
- For those not ready for a larger entrance fee, residents can choose a monthly rental option, separate from the Life Plan contract, that provides a flexible, affordable option
This Type B model is ideal for people who want a balance of financial flexibility and future security, and Clermont Park is the only community of this kind in the city of Denver. Those who prefer moderate entrance fees and predictable access to healthcare services without committing to the highest-cost contract will appreciate this type of community.
Type C: Fee-for-Service Communities
Type C, or “fee-for-service,” communities have the lowest entrance fees (and sometimes none) but do not include future care costs in the initial contract. Residents pay full market rates for assisted living or skilled nursing services if they ever need them.
Key features include:
- Lowest or no entrance fee
- Monthly fees may start lower but increase substantially if higher care is required
- Greatest flexibility but least financial predictability
This type of community is best for independent, healthy older adults who are confident about managing potential healthcare costs later, or those who hold long-term care insurance to cover future expenses.
Comparing Types A, B, and C at a Glance
| Feature | Type A | Type B | Type C |
|---|---|---|---|
| Entrance Fee | High | Moderate | Moderate to Low |
| Monthly Fee | Predictable | Predictable to Moderate | Variable |
| Included Care | Comprehensive (little or no increase) |
Partial (discounted or limited) |
Pay as needed |
| Refundability | Sometimes partial | Up to 90% at Clermont Park | Variable |
| Flexibility | Lower | Higher | Highest |
| Ideal For | Those seeking maximum long-term cost certainty | Those seeking balance and flexibility | Those prioritizing short-term affordability |
Questions to Ask When Comparing Life Plan Communities
When evaluating communities, consider the following questions:
- What levels of care are included in the contract?
- How are monthly fees adjusted if care needs increase?
- Is the entrance fee refundable, and if so, how much?
- Are there rental or nonrefundable options?
- How financially stable is the organization operating the community?
Clermont Park encourages prospective residents to discuss their goals and financial comfort levels with the admissions team to determine the best match for their needs.
Why Choose a Type B Life Plan Community Like Clermont Park?
Clermont Park’s Type B model offers a thoughtful blend of value, security, and flexibility. With 90% refundable, 50% refundable, and fully declining entrance fee options, residents can protect their investment while knowing they’ll have access to supportive care if needed. For those seeking short-term or lower-commitment arrangements, the rental option provides yet another layer of choice.
Residents also enjoy a full spectrum of amenities, wellness programs, and community life, all designed to promote independence, engagement, and peace of mind.
Next Steps: Explore Clermont Park’s Options
Choosing the right life plan community is a deeply personal decision that depends on lifestyle, health, and financial preferences. Understanding the distinctions between the three types of life plan communities helps you plan with confidence and clarity. It can also be helpful to review your long-term financial goals using tools from the Consumer Financial Protection Bureau’s Planning for Retirement resource.
To learn more about Clermont Park’s pricing and contract options or to schedule a personal visit, contact us today.
