My mother's Memory care facility increased monthly rent. Can they do this?

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My mother's Memory care facility increased monthly rent. Can they do this?

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My mother moved into this Royal Palm Beach, Florida facility with memory care. Started with an introduction price for 4 months. Now after the agreed price went into effect for only one month, they sent my sister a letter letting her know that they raised the price an additional $400. Not because my mother needs additional care, but because the price of nursing and supplies are higher. Is this something they could do?

My daughter sent a plea letter because it puts it at an unaffordable rate and she's barely been there 6 months. She is not eligible for Medicaid at this point and is self-pay. Are they gauging? We have not heard from them yet and it's been almost a month. They already sent the new amount as a bill. What are our options? They brought my Mother in saying that was the highest it would be.

Frauds & Scams Memory Care Paying for Care

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Was there a lease signed? (if so who signed, and I hope it was a POA not as a guarantee of payment)
What does the lease say as far as raising rates?
The cost of everything has gone up some more outrageous than others.
You may have few options if the lease states that they can raise rates.
If this facility accepts Medicaid then the application for Medicaid will happen a bit faster since her funds will be depleted sooner.
You can look for another facility but there is a possibility that rates will be going up at all.

I am sure you will get other responses that will be more detailed than mine....

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Why was your mother moved into a Memory Care Facility whereby a rent increase of $400 made it unaffordable to live there???? Rent increases happen yearly, as a rule, everywhere you go. This is not considered 'price gauging' any more so than charging $9 for a watermelon at the grocery store or $26 a lb for beef or $6 a gallon for gas is considered price gauging. It's the cost of life nowadays with inflation *that's rising on a daily basis* added in. There is nothing you or your daughter can do about this situation, other than move your mother out and into a new Memory Care AL. But do know, that rent increases should happen there as well, on a yearly basis, as they did at my mother's Memory Care AL like clockwork. If I recall, the last one was $500 a month. Mom was self pay entirely as well.

Good luck.

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Yes, in the long term, $400 is alot!
We did sign a lease.
I did expect maybe 6-8% but 38% is quite high.
I could understand if they say next year we will have an increase of...but less than 30 days puts you in shock.
Not everyone has the ability to pay that and if you couldn't you'd have to rush to find another facility. Which was a question asked when the Lease was signed if the possibility of an overall increase could happen and they said it was unlikely be anything more that 6-8%. Mind you we were in the middle of the pandemic still in December of 2021. My mother moved in January, 2022. But of course non of that is in writing...just trying to get answers or other point of views on what to expect or do.

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Yes, they can. Read your contract. In my brother's ALF they said raises could be expected in normal circumstances yearly on the anniversary and would range 3-5%. Of course Covid wasn't normal circumstance. Neither is inflation if you are watching your grocery receipts; imagine buying for a MC or ALF?
Your options are to seek other facilities; I can't imagine you won't face the same problems. You might consider a visit to admin before you begin the search, telling them that you cannot afford these raises so soon.
Wishing you good luck.

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Thank you...i'm looking into that.
I can't imagine 38% increase being a norm but i guess we'll have to deal with it on a day to day basis.
Yes, a Lease was signed.
I can't get a straight answer to that. Working on that.
I keep "Missing" the director and it's been almost a month.
When the Lease was signed they were working on the application to accept Medicaid. This was almost 8 months ago.
At this rate if they (facility) don't get accepted it will be very difficult to afford after my mother's money is depleted.
Thank you all for any advice. Never had to deal with any of this before.

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Yes.... like luxury apartments and hotels, they definitely can increase the monthly rate based on whatever is in your contract; they usually have a statement about increases due to normal circumstances. Covid and the current inflation are not normal circumstances so the rates are definitely likely to increase at most facilities. The price of medical supplies has definitely increased as well as the costs of shipping supplies. We won't even get into the cost of food for and AL, LTC or MC with all of the diets they have to prepare. And of cost, there is the increasing cost of trying to find and retain staff.
Most lease agreements are good for 1-2 years even with normal increases and then they are re negotiated at the end of the lease. Saying that the price after trial pricing "was as high as it was going to be" sounds like a bit of marketing scam to me as a certified Assist. Living Administrator but if you didn't get that statement in writing, you can't prove it was ever made so legal grounds to fight.

Not sure about FL but the number of Medicaid beds available in AL and MC in NJ are scarce. You can look at other facilities but will likely run into the same problem. You may want to look for LTC facilities that have MC units. They are more likely to take Medicaid (since they accept federal funds via Medicare) for which your Mom may qualify after she depletes her private funds.

Sorry you are going through this but I wish you good luck in your journey.

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Thank you

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Yes, a Lease was signed.
By my sister who is the POA. but has a full time job and my stepfather and her husband both with Alzheimer in her home. Just trying to get answers.
I don't believe there was a cap on the increases which is why i'm asking for advise on whether a 38% is a norm. without much notice.
My mother is self pay and the facility at the moment does not accept Mediaid yet. They said they were trying to be Medicaid approval and here we are 8 months later and no information yet. They are a new facility (2 yrs) and there are many more things that need tweaking, which i understand.
Just thought i can get some help on this site to accept or try to see other options. All this is totally new to my sister, daughter and I.

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Thank you

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Unfortunately, they can. The MC we went with for my Aunt had a Spring Special advertising a two-year rent freeze. Also there was a $4,000 one time community fee which they gave $500 off.

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I'd have to go through the Lease it with my daughter to hopefully see something but at this moment my mother's funds will pay it but it will run out much sooner than expected at this point. They were assuring us that by that time they would have their Medicaid approval. They still do not have it.
Just questions I ask to get opinions from this site. I really don't know enough about any of this.

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The lease should spell out the frequency with which an increase could be imposed. From what I've read here and elsewhere, that would normally be annually. Having an increase after she's been there barely 6 months seems unwarranted. On the other hand, if all leases have their annual rent increase date set at the same time, it's possible the facility operates on a fiscal year basis so rent amounts would all be set to change on July 1st. I'm not familiar with MC practices about rent so don't know if people's annual rent increase dates are based on when they moved in. This is not quite the same thing, but we're in a condo assocation, and our budget year runs from July 1-June 30. If you move in mid year, your dues are whatever is in effect for that year, but you might very well have an increase (along with everyone else) when July 1st comes around.

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Check the lease. Sales people just want to get the commission on the sale.

If you can't find the lease, enlist the aid of your state's office of aging. When I look on the website, it looks like there is an office of Elder Affairs in Florida.

If the facility is licensed, the state will know about it and direct you to the correct area that can help you plan for the future. If the facility is unlicensed, you probably want to move your Mom anyway.

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you indicate that the facility is not accept Medicaid yet.. I think I would contact a care advisor and start checking out place that go from self pay to Medicaid, And one that will also have memory care. Care advisors are simply similar to realtors. You would meet them for a tour, they know what’s available, with the cost star, what your needs are, do they match the facility, who accepts Medicaid, who has openings,… And invaluable service. They are paid by the facility if a placement is done. My mom’s facility took my mother in knowing she wasn’t going to have self-pay for a year. It would be close, but they didn’t have any problem taking her in. My mom died just as we were starting the Medicaid application.

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Medicaid usually does not pay for AL or memory care. If like my State, Medicaid may pay after at least two years of private pay. Thats if the MC excepts Medicaid at all. And if they do, they may only allow a certain % and if they have reached that cap, you won't be able to stay anyway.

Please note that date is 6/27. Hopefully OP has been able to settle the problem.

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My mother's Memory care facility increased monthly rent. Can they do this?

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