What’s your type?

Learn what makes a “Type C” community different

Created date

February 12th, 2020
A wide variety of seniors gather in a white table cloth dining room. Most are sitting and chatting while eating lunch together. One woman is in the process of sitting down.

At a Type C model of continuing care retirement community, like the one at Ann's Choice, you can enjoy peace of mind that your health and your finances are in good hands.

Seniors have more living choices than ever, but the hype can be confusing. To find the home that best meets your needs, start by learning about differences among continuing care retirement communities (CCRCs). What you don’t know may surprise you. 

Three types to choose from

There are three types of CCRCs: A, B, and C. Ann’s Choice, the Erickson Living-managed community in Warminster, Pa., is a Type C. All CCRCs offer multiple levels of living: independent, assisted, and advanced care, which can include memory care, rehabilitation, and skilled nursing. 

The major difference among them is when you start paying for assisted and advanced care. This distinction can affect your finances now and in the future. 

Type A is the most comprehensive and expensive model. It assumes that you’ll need advanced care at some point and charges you up front. You pay a higher entrance deposit and monthly fee to cover the cost of future medical care for as long as you need it. 

But what if you never need it? 

If you continue to live independently, you’ll pay for services you never use or need only for a brief time. And if you decide to move, you might lose your entrance deposit, which typically is nonrefundable. 

Before you choose a Type A, look at your family’s medical history and current health. Consider whether it’s worth paying a premium for care you might not use.  

Type B is a less-expensive version of a Type A. You pay up front for future health care costs, but only for a set period stipulated in your entrance agreement. For example, your contract might cover 30 days of skilled nursing every four months. Once you exhaust that benefit, you pay the cost, in addition to your monthly fee. 

Before you choose a Type B, weigh the monthly fee against the coverage period, and decide if this provides the value and security you need. 

Type C, the model in place at Ann’s Choice, is a nonprofit, fee-for-service community. You do not pay up front for advanced medical services, so your entrance deposit and monthly fee are lower than at Type A and B communities. If you require advanced care in the future, your monthly fee adjusts to cover the cost.   

Many people prefer a Type C, because they don’t pay in advance for care they might not use. They feel that it makes better financial sense to pay for care if and when they need it.  

Other important differences

Ann’s Choice is unique, because you’ll be refunded 90% of your entrance deposit to you or your beneficiaries when you no longer reside in the community. This ensures that the assets you worked so hard to accumulate will be preserved. 

Most important, Ann’s Choice is committed to be your “home for life.” Our Benevolent Care Fund supports anyone who, through no fault of their own, experiences a genuine and unforeseen change in finances while residing there. No resident will ever be asked to leave the community due to a genuine inability to pay. (See the Residence and Care Agreement for more details.) That kind of security is rare, and something you should consider as you weigh your options. 

Find out more

If you have additional questions about the differences among your living options, please call the Ann’s Choice sales office at 1-800-401-9069. There’s no pressure, just valuable information that will help you make the right choice.