I live in a small (approx 200 independent living residents, plus 48 units divided into Memory, AL, and SNF) CCRC that offers two types of contracts: fee-for-service (Type C) and "equalized pricing" Life Care --- i.e., not the "traditional" Life Care in which one continues with their IL rate as they move into Health Care. The "traditional" is what Marketing people tout as a more of a level cost arrangement, in which a Life Care resident, even with the minor additional costs of two more meals/day, avoids the huge spike in costs that a fee-for-service resident would experience going into Health Care, paying the "street rate." In "equalized pricing" here, a fixed amount for Health Care is determined annually by an average of all Life Care units' monthly IL rates, ranging from 3-BR cottages to one-BR apartments. This weighted amount is for all levels of care. As a hypothetical example, a $4500/month rate is calculated and announced as the "Life Care rate this year" for Memory, AL, or the SNF. That's a steep discount from the "street rate" for SNF care which could be, say, $9200/mo. But that $4500 may be MORE than someone was paying for their one-bedroom IL apartment or MORE than a 2nd person fee in a two-person unit. Therefore, equalized pricing can mean a greater cost than IL for some. At first I thought this equalized pricing Life Care was more Type B than Type A, but one consultant said "not really."
Whenever Marketing asks me to host a "shopper" for a meal, I try to find out if the visitor(s) is shopping for Life Care or fee-for-service. I then strongly encourage them to make sure they get a thorough explanation of what Life Care is here directly from Marketing. Marketing can trust me not to "do their job" in that respect, and because of the complexity I don't want to be the source of "unusual" information.
From what I've read about the Baby-Boomers (my generation ... I call myself a "leading-edge Baby Boomer), they may be interested more in Type D (rental contracts) that don't require a big entrance fee. Naturally the monthly fee would be higher than an A, B, or C contract. Many may have taken out reverse mortgages and may not have the assets to divest for an entry fee .... but they may have the cash flow for higher monthly payments. Additionally, I think right now, statistically, more Type Ds are for-profit. At a for-profit community, what happens when a renter can no longer pay their rent? They could possibly be evicted, unless the For Profit Type D community has established a means to subsidize those who can't meet the monthly obligation.
I wouldn't be surprised if traditional entrance-fee CCRCs with empty land to develop might decide to build Type D units out of necessity as the Baby Boomers hit the system. Type D might be more easily introduced into those communities that already have some contract diversity (say, Type C and Type A). Or, in the "affiliation" world of senior living (I suppose similar to merger/acquisitions of the corporate world), some multi-site CCRC organizations will add Type D communities. Whether those would be actions taken by both non-profit and for-profit organizations remains to be seen.
Some shoppers I host say, "I couldn't believe the difference in cost for a 2-BR apartment here versus what the same size apartment costs at XYZ community across town." They don't realize that one is fee-for-service and the other Life Care. The more "shoppers" utilizing this forum to get the basics, the better.