What You Need to Know About Continuing Care Retirement Communities (CCRCs)
Life Plan Communities, also known as Continuing Care Retirement Communities (CCRCs), are becoming an increasingly popular option for older adults who want a long-term living solution that combines independence, social engagement, and access to future healthcare.
These communities are designed to provide a continuum of care—offering independent living, assisted living, memory care, and skilled nursing services all within one campus. This means residents can remain in the same community as their care needs change over time—essentially allowing them to “age in place” in a supportive environment.
Beyond healthcare, CCRCs offer numerous lifestyle amenities, including housekeeping, dining options, transportation, fitness and wellness programs, recreational activities, and social outings. The goal is to combine comfort, community, and care in one location.
The Growth of CCRCs in the U.S.
There are currently around 2,000 CCRCs across the United States, according to industry sources such as MyLifeSite and the National Investment Center for Seniors Housing & Care (NIC). By comparison, there are roughly 30,000 assisted living facilities nationwide, but CCRCs are unique in offering a full range of long-term care options under one contract.
Monthly fees typically range between $2,000 and $5,000 or more, depending on the community’s location, contract type, amenities, and level of care. However, most CCRCs also require an upfront entrance fee, which can range from $100,000 to $1 million depending on the contract structure.
Because these contracts and costs vary widely, careful financial and legal review is essential before committing.
Understanding the Financial Commitment
The first—and often most significant—consideration is affordability. Can you comfortably manage both the buy-in (entrance) fee and the ongoing monthly costs?
Many residents use home equity, savings, or investment assets to fund their move. Some facilities allow partial refunds of the entrance fee to your estate or heirs, depending on the contract.
Each state regulates CCRCs differently. To protect consumers, states often maintain public listings of licensed CCRCs and provide consumer guides. In addition, CARF International, a nonprofit accrediting organization, evaluates and certifies CCRCs that meet high standards of financial stability and quality of care.
Medicare, Taxes, and Long-Term Care
It’s important to note that Medicare does not cover the cost of living in a CCRC, as it does not pay for long-term care. The only exception is when a resident receives skilled nursing care within the community—Medicare may cover up to 100 days of that service.
However, part of your CCRC fees may be tax-deductible. Because contracts often include prepaid healthcare services, the IRS classifies a portion of these costs as medical expenses. Always consult with your elder law attorney or financial advisor to understand how these deductions apply to your situation.
Types of CCRC Contracts
While each community sets its own terms, CCRCs generally offer three main types of contracts:
1. Type A – Life Care (All-Inclusive Contract)
- The highest upfront and monthly costs, but most predictable.
- Covers unlimited access to assisted living, memory care, and skilled nursing at no additional charge.
- Best suited for those entering healthy and independent, planning for long-term security.
2. Type B – Modified Contract
- Offers a set amount of healthcare services at a fixed rate.
- Once that limit is reached, residents pay reduced or market rates for extra care.
- Good for those anticipating moderate medical needs.
3. Type C – Fee-for-Service Contract
- Lowest entry fee, but residents pay market rates for care services as needed.
- Ideal for those with private long-term care insurance or substantial assets.
Before signing, review the fine print with your elder law attorney to ensure you fully understand your rights, responsibilities, and refund options.
When Is the Right Time to Move?
The best time to move into a CCRC is before a health crisis arises—while you’re still healthy enough to enjoy the community’s amenities and activities. Early movers benefit most from wellness programs, social opportunities, and preventive care services that promote longevity and independence.
For couples, CCRCs can be especially valuable, allowing spouses to remain close even if one partner eventually needs more intensive care.
Lifestyle and Location Considerations
CCRCs offer vibrant social calendars, wellness initiatives, and lifelong learning opportunities that keep residents active and engaged.
However, location matters. Some CCRCs are in quiet, suburban or rural settings, while others are located in cities or even on college campuses, offering cultural and educational programs.
Ask yourself:
- Is the community’s location convenient for family visits?
- Does the lifestyle fit your long-term preferences?
- Are the activities, dining options, and amenities what you envision for your retirement years?
Questions to Ask Before You Commit
When visiting a CCRC:
- Bring a trusted family member, advisor, or elder law attorney.
- Ask for a copy of the facility’s financial statements and accreditation history.
- Inquire about refund policies, staffing levels, and resident-to-caregiver ratios.
- Tour the medical wing and ask to spend a trial week on campus.
Also, research the facility’s financial stability. Some CCRCs have faced bankruptcies in the past, which forced residents to relocate—a stressful and costly experience.
Planning with Professional Guidance
Choosing a Continuing Care Retirement Community is a major life decision that involves both emotional and financial considerations. With the right planning and professional guidance, it can also be a rewarding step toward peace of mind, security, and quality of life.
If you’re exploring a CCRC as part of your long-term care or estate plan, our experienced elder law team can help you understand the fine print, protect your assets, and make the best decision for your future.
📞 Call us at (207) 848-5600 or visit our Contact Page to schedule a consultation.
