A Life Care Community (LCC) is the most comprehensive model of senior living, offering a full continuum of housing and healthcare services all on one campus. These specialized communities are a specific type of Continuing Care Retirement Community (CCRC). The central feature of an LCC is a long-term contract that guarantees access to future, higher levels of care without requiring a significant increase in the monthly service fee. This structure eliminates the financial uncertainty associated with the unpredictable costs of long-term care, providing a defined, predictable financial plan for aging.
The Defining Feature: Type A Contracts
The defining characteristic that makes a CCRC a true Life Care Community is the Type A contract, also known as an Extensive or All-Inclusive contract. This contract guarantees residents unlimited, long-term access to assisted living, memory care, and skilled nursing services as their health needs change.
The Life Care contract functions much like a long-term care insurance policy, with the community absorbing the financial risk of a resident needing extensive future care. Residents secure this long-term financial predictability by paying a substantial entrance fee upfront, which essentially pre-pays for the future availability of the healthcare continuum. This arrangement offers the greatest degree of financial security because it protects personal assets from the high, fluctuating market rates of skilled nursing care. The resident is assured that their address and their financial obligation will not change significantly due to a need for advanced care.
The Three Levels of Residence
Life Care Communities are structured around a tiered system of housing and services that allows residents to seamlessly “age in place.” The process begins with Independent Living (IL), where active seniors live in apartments, villas, or cottages, enjoying a maintenance-free lifestyle with various amenities and requiring no assistance with daily activities.
As a resident’s health needs progress, they transition to the second level, Assisted Living (AL) or Personal Care. Assisted living provides support with activities of daily living (ADLs), such as dressing, bathing, and medication management, while still promoting a degree of independence. This move typically involves relocating to a dedicated building or section of the campus.
The highest level of care is the Skilled Nursing Facility (SNF) or Healthcare Center, which provides 24/7 medical supervision and professional care for complex medical needs or long-term custodial care. Residents move to the SNF for either short-term rehabilitation following a health event or for permanent long-term care. Because all three levels are located on the same campus, the transition is a logistical move rather than relocating to a completely new facility.
Financial Structure and Fees
The financial commitment to a Life Care Community is substantial and is divided into two primary components: an Entrance Fee and a Monthly Service Fee. The Entrance Fee is a large, one-time payment made before moving in, which secures the residence and guarantees the resident’s access to the future care continuum. Nationally, the average Life Care entrance fee is often in the range of $300,000 to $350,000, though this varies widely based on the size of the residence and the community’s location and amenities.
A portion of the entrance fee may be refundable to the resident or their estate upon termination of the contract, depending on the specific agreement chosen. Common refundability options include a traditional declining balance, where the refund decreases over time, or a guaranteed percentage refund, such as 50% or 90% of the initial fee, regardless of the length of stay. The non-refundable portion of the entrance fee helps the community fund its operations and subsidize the cost of future long-term care for all residents.
The Monthly Service Fee covers the cost of living, including meals, housekeeping, maintenance, utilities, and access to all community amenities. Crucially, for a Life Care (Type A) contract, this fee also includes the pre-paid component for unlimited healthcare. When a resident moves from independent living to skilled nursing, the monthly fee remains relatively stable, increasing only minimally to account for operational differences like extra meals or ancillary services.
Distinguishing LCCs from Other Senior Living Options
The Life Care Community model, defined by the Type A contract, is distinct from other Continuing Care Retirement Community arrangements. The two other common CCRC contract types are the Type B (Modified) and the Type C (Fee-for-Service). The Type B contract offers a discounted rate for healthcare services, but only for a limited number of days or a defined period. Once that discounted period is exhausted, the resident must pay a significantly higher, near-market rate for any additional care needed.
The Type C, or Fee-for-Service contract, carries the lowest initial entrance fee and monthly fees. However, if the resident requires assisted living or skilled nursing, they must pay the full, unsubsidized market rate for those services at the time of need. This model shifts the financial risk of long-term care entirely to the resident, which is the opposite of the Life Care (Type A) model.