The Basic Contract Types of Life Plan Communities
Galloway Ridge is a Type-A Life Plan Community
Life Plan communities offer a combination of independent living, assisted living and memory care all on one campus. They provide a variety of services and amenities to residents, like meals, housekeeping, and transportation, while focusing on independent, healthy living with built-in support programs as they are needed.
They provide a great level of comfort to their residents and families. Seniors are able to effectively “age in place”, knowing that any of their future health needs will be managed.
Life Plan Contract Types
There are four main Life Plan contract types, and each offers different features designed to meet an individual’s budget and health care needs. These include:
Type A- Extensive or Lifecare: This contract requires an entry fee and a relatively stable monthly fee. A resident in a Type A Life Plan community is able to move from independent living into assisted living or memory care and has access to long-term care for little or no extra fees.
Type B- Modified: A Type B contract provides similar services and amenities as that of a Type A contract, but an additional cost may be incurred for some health care services. A resident may be allotted a certain number of days of higher level care before being charged the market rate.
Type C- Fee-for-Service: This contract type has a lower entry fee, but residents will pay market rates for any health care services on an as-needed basis. The same services and amenities are available as those offered through a Type A or Type B contract, but if a higher level of care is needed, the resident’s monthly fee will increase.
Type D- Equity Agreement: In this situation, a resident will purchase their residence instead of paying an entry fee, and will pay a monthly service fee or home association fee. Health care services are available to residents at market rate or at a slightly discounted rate.
The Value of a Type A Contract
A Type A Life Plan community like Galloway Ridge offers the most comprehensive care of all the contract types. A Type A contract allows the senior to assume the least amount of risk financially. The entry fee to a Type A community is based on the assumption that an individual’s needs will change over time and a higher level of care will ultimately become necessary. Residents living in a Type A community could find that they are actually saving a substantial amount of money, since the entry fee and monthly fees cover any additional health care services. A Type A contract is perfect for those seniors who want peace of mind that their health care needs will be covered for the remainder of their lifetime.
Find out more about the services and amenities offered at Galloway Ridge by clicking here.