help_outline Skip to main content
Shopping Cart

Residence and Care Agreements

Costs of Type C versus Type B contracts.
Author Last Post
I'm curious to know how CCRCs with Type B and C contracts price them relative to each other.

Recently my CCRC  introduced a Type C contract option and has priced it in a way I find strange when compared to the prices of Type B contracts. As one would expect the entry fee for Type C contracts is less than the Type B entry fee, roughly 25% less. However the Type C monthly fee is 7.2% greater than that of a Type B contract.

I would think that from a marketing viewpoint, if for no other reason, both entry and monthly Type C fees should be less than the corresponding Type B fees.

When I've asked managers in marketing and finance people about this pricing their answers have ranged from "gee, that's interesting; I don't know" to "I have no role in setting fees and I won't speculate about them."

Can someone provide a rationale for type C monthly fees being greater than those of type B? What am I missing? Let me note that the B and C contracts are identical except that B contracts include a limited amount of health care coverage while Type C contracts provide no health care benefits.

Thanks for your help.
Return to Forum