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All CCRC's monthly's seem to go up every year. Unfortunately, not all states have state oversight of rate increases or even a requirements for public filing of rate increases. In one state I know about, they not only have to disclose their annual rate increase, but must also show a 5 year history of each increase in that disclosure. So you're not just seeing a one year increase, you get to see how they have been increasing rates over 5 years.
I also like the states that mandate the actual written agreements a person signs to be included in that disclosure. Often there will have all these addendums and exhibits that start painting a more specific picture of what expenses a person can incur. Example, they say "light housekeeping" but the exhibit shows that's basically vacuuming and dusting, you want the bathroom cleaned = extra $25. The biggest is always the "Meals". What, how many and how calculated? Is it based on beans and franks or a true hearty meal? Is it a declining balance or just a per setting?
I also like the states that have medical cost deductible estimates in their disclosures. This is when the community provides the estimated annual amount of medical expense in the monthly. So a person paying $5,000 a month knows that of that amount, about $1,500 (or $18,000 a year) is considered a medical expense deduction per IRS. Now that comes in real handy when they first move in as the medical expense portion of the buy-in may be in the many tens of thousands.
Well that's welcome news for those considering a CCRC.
I have extensively researched CCRCs and this is the first time I’ve heard of a CCRC charging an extra fee based on age. In fact, typically, CCRCs want you to move in as soon as possible after you reach a certain age, usually 62 or 65, as you’re likely to not need assisted living, memory care, or skilled nursing for a longer period. CCRCs do a thorough job of reviewing one’s finances to help ascertain that your finances will be sufficient.
I would be worried about the monthly charge being open to change once a year.
Back in 2015 it was, roughly, 800ish/month which seems quite reasonable. But today? Who knows what that monthly charge is now. Add in the additional charges for extra help (housecleaning, laundry, nursing, etc) and it's easy to see how the costs could become formidable with even a relatively mild setback.
Typically, monthly fees increase at most CCRCs around 3-4% per year (or close to the inflation rate). Housekeeping, nursing (except for private care while in independent living) and some laundry services are included at most CCRCs.
Typically, monthly fees increase at most CCRCs around 3-4% per year (or close to the inflation rate). Housekeeping, nursing (except for private care while in independent living) and some laundry services are included at most CCRCs.
A 3-4% annual increase would add up, especially over the course of 10/20/30 years. I wonder if they cap the increases at a certain point.
A 3-4% annual increase would add up, especially over the course of 10/20/30 years. I wonder if they cap the increases at a certain point.
Based on my reading of several state CCRC regulations, they can't cap the monthly increase as the law requires they meet certain minimum funding levels. If they need to raise monthly's to cover increase salaries cost in the health care area or to pay increased water rates throughout the community or buy new vacuums for the housekeeping staff or if the cost of chemicals for the pool skyrockets, they are forced to raise monthly's to meet financial increases. Now some states only allow increases at set periods and only with certain advance notice, but unless the parent organization of the CCRC has another approve source of funding to cover monthly operating cost and expenses, it's all on the residents monthly to cover it.
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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Originally Posted by TheShadow
It's not. It's a community where you start out in an Independent Living unit, then when you need assistance, you move up into an Assisted Living unit, or they provide the assistance in your current unit. Then eventually, if or when you need nursing home care, you will be moved into that sort of unit.
Check the demographics, but I will guess most people in average health don't enter this facility prior to age 80. And their stay <15 yrs. You're scaring them into thinking you'll require 30+ yrs as their resident.
The additional fees for the younger, are probably based on data from many years of stats of rapidly increasing costs.
But your assets - used to pay your expenses - would go up more than 3-4% each year, on average, over a 30 year period.
But if you are not well enough to manage your assets, who will do that?
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