Friday, September 30, 2022
Many long-term-care facilities are responding to inflation by raising prices and adding new fees to their residents bills. This is to cover higher costs of food, utilities, insurance, wages, supplies, and management of COVID-19 protocols, but the increase in cost of living is now putting on a strain on many older Americans.
Prices vary by region and type of care, but many have seen increases ranging from 3% to 12%, leaving monthly bills to skyrocket. A recent study by NORC at University of Chicago showed that approximately 11 million middle-income seniors may not be able to afford assisted livings while also unable to qualify for Medicaid. And even if they do qualify for Medicaid, they will have to consider the reimbursement rates which have no been rising at the same pace as the cost for food, medical suppliers, and labor.
Angela Plea, chief executive of Assisted Living Locators, advises her clients to consider alternatives within their facilities to lower their monthly costs. This can include moving to “less desirable rooms” on higher floors or receiving medication at different times of day. She also encourages her clients to consider short-term bridge loans, looking into benefits through Vertan Affairs, or considering taking on roommates to offset costs.
For more information see Clare Ansberry “Another Inflation Stress: Rising Costs of Senior Living Homes Strain Families”, The Wall Street Journal, September 22, 2022.
Special thanks to Lewis Saret (Attorney, Washington, D.C.) for bringing this article to my attention.