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What Is a Lifecare Contract?

A senior man looks at paperwork

Have you considered how you’ll pay for your healthcare costs if your needs increase due to illness or another condition? A study by West Health and Gallup found that 45% of Americans are afraid they’ll have to file for bankruptcy protection if faced with a major health crisis. If you’re counting on Medicare to cover your costs, it won’t. Steve Feinschreiber, senior vice president of the Financial Solutions Group at Fidelity Investments, estimates that about 15% of the average retiree’s annual expenses will be used for healthcare-related expenses, including Medicare premiums and out-of-pocket expenses.

Moving to a Life Plan Community, (formerly known as CCRCs or Continuing Care Retirement Communities) and opting for a Lifecare contract is proving to be an excellent solution to counter these concerns. These types of senior living communities provide predictable costs for all levels of care, and independent living residents are guaranteed priority access to on-site assisted living, memory care and skilled nursing for as long as they need it

If you have a Lifecare contract at a Life Plan Community such as The Atrium at Navesink Harbor in Red Bank, New Jersey, you’ll be entitled to a wide array of benefits. You’ll enjoy an active, independent lifestyle with top-notch amenities and a robust social calendar. Plus, you’ll have your choice of spacious floor plans, so you can create a beautiful apartment and live life your way. 

Understanding Life Plan Community Contracts

There are three types of contracts available in today’s Life Plan Communities: Type A Lifecare, Type B Modified Plan, and Type C Fee-for-Service. At The Atrium at Navesink Harbor, we offer multiple contracts with traditional and refundable options, including Lifecare. 

With a Lifecare contract, Life Plan Community residents have the security of knowing their present and future healthcare needs will be covered and costs will be predictable. Lifecare guarantees the care you need, for as long as you need it, at rates that are the same or very close to what you pay in independent livingand far less than you’d pay on the open market. You can also count on high-quality care, all available on the same community campus — you know where they’ll get your care, who’ll provide it, and how much it will cost.

All three contract types cover a wide variety of services (such as maintenance, linen service, housekeeping, dining) and amenities (such as fitness area, pool, classes, and clubs and socialization activities). They also give you access to higher levels of onsite care, as described earlier in this blog post. But there are key differences in these three types of contracts. 


Type A – Lifecare

Here are its topline benefits and features:

  • Lifetime Coverage You pay a one-time entrance fee and a monthly service fee. This ensures you’ll have a residence at this community for life, even if you outlive your resources and can no longer afford the full monthly fee.  
  • Continuum of Care – You have access to a full continuum of care at predictable, stable rates for the rest of your life. You’ll never again have to deal with skyrocketing  medical costs on the open market.
  • Estate Protection – The contract protects your estate thanks to predictable care costs. And if you need or want to move, you receive a partial refund of your entrance fee. Plus, a portion of your entrance fee may be tax-deductible.
  • ADL Assistance – In addition to your residence, your contract covers long-term care needs including assistance with ADLs (Activities of Daily Living such as meal preparation and eating,  dressing/grooming, medication assistance, mobility assistance, bathing, advanced assistance with dementia/Alzheimer’s needs)

What healthcare services are not covered under a Life Care contract? Typically, it won’t cover doctor visits; diagnostic testing; X-rays; medical equipment; medications; physical, occupational and speech therapies;  or mental health services. These services generally fall under what is covered in part by your Medicare plan. Depending on the type of plan you have, the rest is generally paid out of pocket.


Type B – Modified Plan  (also called Modified CCRC or Modified Agreement)

This type of contract includes housing, services, and amenities, with assisted living, memory care/support, and skilled nursing care typically provided in one of two ways: 

1) a limited number of free days included as part of the entrance fee, with additional care billed at per diem market rate

2) an ongoing, minimally discounted rate. Health care services may be delivered onsite or offsite, and two monthly service fees may be incurred if couples require different levels of care.


Type C – Fee-for-Service

With a fee-for-service contract,  housing, services, and amenities are provided under a residence agreement. Access to long-term care, as needed, is typically guaranteed, but is charged at fee-for-service market rates. If the resident at some point requires care on a short-term basis, in order to maintain their independent living residence, that resident would be required to pay the monthly service fee on the independent living residence, plus the costs of housing and health care received in the assisted living, memory care/support, or skilled nursing residence.


Your Worry-Free Senior Living Community Awaits.

We’ve got the easygoing lifestyle you’ve been looking for, backed by the security of a continuum of onsite care if you ever need it. Our spacious apartment options are as large as  1,682 square feet with full dining rooms, master bedrooms, walk-in closets, and more! Complete the contact request form and a representative will call you to answer all your questions and schedule a tour.

Need information? Right this way.

outdoor area at The Atrium at Navesink Harbor

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