The entrance fee is central to how CCRCs work. Here is what it covers, why it varies, and how refund options change the math.
What is a CCRC entrance fee?
A CCRC entrance fee is a one-time, upfront payment you make when moving in. It secures your residence and, depending on the contract, prepays a portion of your future assisted living, memory care, or skilled nursing. Entrance fees commonly fall between $300,000 and $600,000 but range from about $40,000 to over $2 million based on location, residence size, and refund terms. A higher entrance fee often means lower monthly fees and more prepaid future care. Many seniors fund it by selling a home. To understand entrance fees near you, call 1-800-MEDIGAP (1-800-633-4427).
What does the CCRC entrance fee pay for?
The entrance fee does more than reserve your residence. In Type A and Type B contracts, part of it prepays future higher-level care, which is why those contracts cost more upfront but limit later care increases. The fee may also be partially refundable — many communities offer plans returning 50%, 75%, or 90% to you or your estate. Non-refundable (declining-balance) plans cost less initially but return nothing over time. Reading the residency agreement closely is essential. A licensed advisor can explain the trade-offs — call 1-800-MEDIGAP (1-800-633-4427).