As you look forward to a fulfilling retirement, you’re most likely considering the benefits, security, and peace of mind a vibrant senior living community may offer. From maintenance-free living to comprehensive healthcare options, exploring the various contract types available to you will empower your decision-making and prepare you for what is next.
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What is a Continuing Care Retirement Community?
Continuing Care Retirement Communities (CCRCs) like Moorings Park Communities in Naples, Florida, also known as Life Plan Communities, are senior living communities that offer various contract types, levels of care, and amenities. They enable retirees to age in place with a continuum of care available to them, should the needs arise.
Designed to provide stability and security, each CCRC contract type offers varying levels of care, financial commitments, and flexibility:
Type A and B Contracts: Moorings Park Communities
With high-end, resort-style amenities and top-notch healthcare services, Moorings Park Communities provides Type A and Type B contracts across their three luxury senior living neighborhoods in Naples, Florida.
Type A | Life Care Contract
With a single entrance fee and a predictable monthly fee, Type A contracts include residential services, assisted living with memory support, and skilled nursing. Retirees are ensured access to continued healthcare and residential services, even if their needs change over time. Should the needs for higher levels of care arise, the monthly service fee remains the same.
The key benefit of a Type A contract is the peace of mind it provides. Residents can enjoy their retirement years knowing that their future healthcare needs are fully covered, regardless of how their needs may evolve. While Type A contracts typically involve a higher initial entrance fee, the long-term stability and care they offer make them an attractive option for many.
Moorings Park in Naples, Florida, offers a Type A contract, which includes unlimited on-site assisted living with memory support at Orchid Terrace, as well as skilled nursing care at The Chateau®, a Medicare-certified, five-star-rated skilled nursing center. In addition, residents have access to on-site rehabilitative services.
“I think to most people, Moorings Park Communities is synonymous with luxury living, and it’s true,” says Vice President of Moorings Park Communities Tom Mann. “Our residences, restaurants, and amenities are amazing, but what truly makes Moorings Park Communities special is our unique, preventative approach to healthcare, along with our world-class assisted living with memory support and skilled care. It’s comforting for our residents to know that, should they ever need it, higher levels of care are available.”
Type B | Modified Contract
A Type B contract provides the same services as a Type A contract, such as living accommodations, dining options, access to campus amenities, transportation, medical services, and assisted living with memory support. However, skilled nursing is not covered by the monthly fee.
Most Type B contracts offer a discounted rate, relative to market rates, for extra services, such as skilled nursing, or they may grant residents priority access with preferred rates.
Moorings Park at Grey Oaks and Moorings Park Grande Lake are Type B CCRCs, or Life Plan Communities. Should residents’ healthcare needs change, assisted living with memory support is available. However, if skilled nursing care is needed, residents of Moorings Park at Grey Oaks and Moorings Park Grande Lake have preferred rates and priority access to The Chateau.
“Many people ask why our two newest communities, Moorings Park at Grey Oaks and Moorings Park Grande Lake, don’t include on-site skilled care. The answer is simple. At all three of our communities, we have been able to secure Extended Congregate Care (ECC) licensure,” says Mann. “This special license allows us to take care of many things that, in the old days, you would have had to go to skilled care for. We can now provide this care in a much more residential setting. Due to the fact that many of our residents carry supplemental insurance, they are able to utilize our skilled care regardless of which of community they live in.”
“Our healthcare is among the very best in the country,” says Moorings Park Communities’ CEO Dan Lavender. “However, everything we do is designed to keep you out of those higher levels of care. Simply put, our goal is to change how America ages.”
Other Types of Contracts
Type C | Fee for Service Contract
A Type C contract is based on a fee-for-service model, which means very little medical care is covered. It is not uncommon for those researching CCRCs to be misled by the attractive low cost of a fee-for-service entrance fee. While a Type C entrance fee is lower than that of a Type A or B CCRC, this is only because the contract doesn’t include healthcare.
Although many Type C contracts cover emergency care, and some may even cover short-term care, none cover assisted living, memory care, long-term care, or skilled nursing. These contracts appeal to individuals who are willing to assume the full risk of their future healthcare costs, as a resident’s monthly fee will increase to reflect the market rate for care. While the entrance fee for a Type C contract may be lower than other options, it’s important to consider that the cost can rise significantly as additional healthcare services are required. This approach introduces some unpredictability in your financial planning as your care needs may evolve.
Type D | Rental Contract
Type D, or rental, contracts require no entry fee, though they may come with a nominal “community fee.” Contracts are normally month-to-month and service fees may be higher than a comparable entrance fee in another CCRC. Residents under this contract may have priority access to an affiliated, off-site healthcare facility but are not necessarily guaranteed access. This arrangement is ideal for those who prefer not to commit to the upfront costs associated with Type A, B, or C contracts.
However, this flexibility comes with compromise. The monthly service fee for independent living might be higher in a Type D CCRC and long-term care and healthcare services are provided at full market rates with no discounts. Type D contracts may not guarantee priority access to medical care facilities if they reach capacity, adding an additional element of uncertainty.
Type E | Equity/Co-Op Contract
While not common, residents under a Type E contract own their home or apartment within the community. This ownership model provides a sense of stability and long-term investment, as the property may be passed on to heirs, similar to any traditional real estate. However, with this model, residents pay a service, or membership, fee that covers amenities and services like home maintenance, dining, and social activities. Healthcare is generally available within the community but is offered at full market rates with no discounts.
Type E contracts are ideal for those looking for property ownership within a senior living community, combined with access to services and amenities. However, it is important to note that in many Type E communities, the on-site sales staff act as your realtor, therefore you are at the mercy of their sales and marketing skills. In addition, when it comes time to sell, you are often competing against any other inventory they have to sell in the community.
Discover Moorings Park Communities in Naples, Florida
CCRC, or Life Plan Community, contracts offer varying levels of care, amenities, and financial structures to suit different needs. Moorings Park Communities provides Type A and Type B contracts across three luxurious senior living neighborhoods in Naples, Florida. They also offer 70%, 50%, or fully depreciating (traditional) contract options. It’s important to note that the IRS views these entrance fees as a prepaid health benefit, which can provide a sizable one-time tax deduction. There is also an annual tax deduction on the monthly service packages.
To see a full list of what’s included in your monthly service package, visit our website. If you need assistance and guidance on what Moorings Park community is best for you and your needs, schedule a tour today and have an in-depth, one-on-one conversation with one of our professional and knowledgeable sales associates who will answer any questions you may have. For more information on Moorings Park Communities, visit MooringsPark.org or call 239-451-5509.
