Type A and Type B contracts handle future care costs very differently. Here is how they compare and which seniors each suits.
What is the difference between Type A and Type B CCRC contracts?
A Type A (Life Care) contract charges the highest upfront and monthly fees but guarantees that assisted living, memory care, and skilled nursing cost little or nothing extra later — you effectively prepay future care and transfer the risk to the community. A Type B (Modified) contract costs less initially and includes a defined amount of higher-level care (for example, a set number of days), after which you pay discounted rates. Type B balances moderate upfront cost with some future protection. The right choice depends on your health outlook and finances. Call 1-800-MEDIGAP (1-800-633-4427) to compare.
Which contract type is right for me?
Type A suits seniors who want maximum predictability and protection against high future care costs, and who can afford larger upfront and monthly fees — it works like prepaid long-term care. Type B fits those who want lower initial costs and are comfortable sharing some future care expense, often a middle-ground choice. Your decision should weigh family health history, life expectancy, and how much financial risk you want to retain. A licensed advisor can model both scenarios against your budget. Call 1-800-MEDIGAP (1-800-633-4427) for free, no-pressure guidance.