Sarasota Senior AdvisorWhat are the main types of life plan community contracts?
Industry practice groups CCRC contracts into three types: life care (often called Type A), in which monthly fees change little when a resident moves to assisted living or nursing care; modified (Type B), which includes a set amount of care or a discount; and fee-for-service (Type C), in which care is paid at market rates when needed.
Florida law does not use the letters; it requires each contract to describe exactly which services are included and which cost extra, so the contract text, not the label, is what counts.
Is a higher entrance fee always better?
Not necessarily: a higher entrance fee may buy a more refundable contract or more included care, so compare the total of entrance fee, monthly fee and expected care costs over ten or fifteen years, and the refund you or your estate would receive.
Many providers offer several refund options, for example declining-balance and 50 or 90 percent refundable plans, at different prices.
Do Florida CCRCs require health screening?
Most do: the contract must describe the health and financial conditions for acceptance, and most communities admit new residents into independent living only, after a health review and a financial review.
Some campuses accept direct admission to assisted living under a separate rental agreement that is not a continuing care contract.
What happens to the monthly fee if one spouse needs nursing care?
Under a life care contract the fee for the spouse in the health center typically stays close to the independent living fee, while under fee-for-service the couple pays the second spouse's care at the health center's daily rate on top of the apartment fee.
That scenario is worth modeling in writing with the community before signing.
Are entrance fees deductible?
Part of a CCRC entrance fee and monthly fee may be deductible as prepaid medical expenses when the provider calculates a medical portion; communities usually give residents an annual figure, and a tax adviser can confirm how it applies.
The deductible share varies by community and contract type.
Where can I compare contract types across Sarasota communities?
Ask each community for its contract options and refund plans in writing; OIR's online filing search also lets the public look up approved contract and addendum filings.
Compare the same unit size across communities.
At a glance
| Contract type affects | Contract type does not affect | |
|---|---|---|
| Future care | Who pays for assisted living and nursing | AHCA licensing of the care units |
| Refunds | Which refund options are offered | The 7-day rescission right |
| Price | Entrance and monthly fees | OIR's approval of the contract form |
Sources include Chapters 408, 429 and 651 of the Florida Statutes, Fla. Admin. Code chapters 59A-36 and 65A-2, AHCA, DCF, OIR and Elder Affairs pages, CareScout and VA rate tables as cited above; see our editorial standards.
