Understand what a CCRC actually promises
A continuing care retirement community offers a long-term contract spanning residential services and levels of care. In California a provider offering continuing care contracts must generally have a certificate of authority and an RCFE license, while a campus offering skilled nursing also needs the corresponding nursing facility license. The contract, not the campus name, determines a resident’s financial and service rights.
Compare Type A, B and C contract structures
Contracts can allocate the costs of future assisted living and nursing care in different ways. A generally more inclusive contract may have a higher entrance fee or monthly amount; a fee-for-service structure may expose the resident to larger later costs. Contract labels alone are not enough. Ask for a written scenario showing monthly charges if a resident needs additional care for six months, two years or longer.
The entrance fee is not the same as a deposit
Ask precisely when any refundable portion is paid after move-out or death, whether payment depends on reoccupancy, how deductions work, and which contract contingencies could delay repayment. Have an attorney or qualified financial professional review the exact agreement and the impact on family and estate plans. A sales illustration should not replace the signed terms.
Examine the provider’s financial ability to deliver
Ask for audited financial statements, required disclosure documents, debt levels, occupancy and capital maintenance plans. California’s oversight includes monitoring financial condition for continuing care promises. Investigate whether a move to a higher care level is guaranteed, prioritized or dependent on a vacancy; also ask about outside hospitalization and temporary leaves.
Test the physical and clinical transitions
Tour the independent residence and the actual higher-care areas. Ask whether a couple may remain close when one person needs different support, whether private-pay charges change after a transfer, and what happens if the campus cannot provide medically necessary care. Compare the campus with the alternatives independently rather than assuming one campus can meet every future need.
Five questions to take with you
- What are the exact coverage differences under this contract type?
- Which portion of the entrance fee is refundable, and when?
- Can care be transferred on campus without an available bed?
- What is the provider’s audited financial position and state disclosure?
- What happens if one partner needs nursing care and the other does not?
Next steps
Key source: California CDSS Continuing Care Retirement Communities. Coverage and regulatory terminology are subject to change. This guide was written as LaterStages editorial research and is not medical, legal or financial advice. Last reviewed November 15, 2026.