We were given notice that our assisted living facility will increase rates by a "modest" amount (14%) to begin in one month. Any advice?

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We were given notice that our assisted living facility will increase rates by a "modest" amount (14%) to begin in one month. Any advice?

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This is $600.00, which in our financial circle is a very large rate increase and not a "modest" rate increase. Besides moving our mother out of the facility what options do I have? Does this seem like a large amount to others as her monthly rate by this much or am I over reacting?

Assisted Living Financial Planning Paying for Care

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I am so sorry. Yes 14% seems high to me. Is this a general increase, or is there also an issue that your loved one needs more help.

Do you have a contract, can they raise prices now (is this when the period is up)?

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That they would call 14% a modest increase tells you where they are. Obviously a for profit company.

I would be looking for a different facility unless moms needs have drastically increased recently and this is a reflection of the additional care required.

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Modest compared to what? The inflation rate in Zimbabwe?

I do honestly think letters like this would be a great deal LESS annoying if they didn't attempt the mealy-mouthed eyewash. If the letter just said "$600 extra, like it or lump it," at least you'd know where you stood, and at least you wouldn't have the insult of being called a whinge-bag added to the injury of being given no option.

Mind you. It might, actually, be modest compared to increases being imposed by other facilities.

Can it be done?

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Don't you get sick of advertisers that tell the price is "ONLY" such-and-such?

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Dear John1234,

No, I don't think you are over reacting! I don't consider that "modest" in the least. When I placed my mom in an IL/AL facility in early 2015, it was privately owned by a husband and wife. Once they retired and sold it to a small, corporate company the yearly increase was 3% (for us around a $100 more per month).

What I'm wondering is whether this has to do with the pandemic to try and make up for losses and paying for PPE and other COVID-19 related expenses. Not only that, if they lost residents(i.e. death) from the virus and were on lockdown like my mom's, no one was moving in or out. Just a thought. If it were me, I would want a breakdown of just what this increase is for. In our case, we would get letters at least one month prior to the new rate increase taking affect and a reason justifying the increase. We ended up moving my mom in May, so I have not experienced this yet at her new facility. I hope you are able to get to the bottom of this so you can make a decision in what to do with your mom.

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Good points. I would add that where I live, It seems that the facilities are having to pay more because aides would rather work in homes, where Covid risk is MUCH less. In facilities, by necessity, there are many workers (dietary staff, housekeeping, personal care, different shifts). In private homes it is often the elderly client and maybe one or two other people. Add to that, the extra 600 in federal unemployment, many people are discouraged from working. I would be more sympathetic if facilities charged a COVID surcharge, which would only last for the duration.

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Since this is a residential facility and you pay rent and care is separate, I wonder if they fall under state guidelines. In my state, a landlord cannot increase rent more than 4% a year.

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What's the COL increase each year? Around 3-4%? (DH weighed in on this). I think 14% is outrageous.

And one month to figure out where this 'modest increase' is coming from? Your loved one pays about $4300 now for care. That's actual probably still a 'pretty good deal?' I don't have anyone in long term care....but I expect that is about what we'd be paying.

Is there any explanation as to why? Is this permanent or temporary? Due tyo COVID and the related expenses of having to job out a lot of extra care--or is your LO becoming more 'work'?

DH is working right next to me right now and I said "You were right, we should have invested in NH's back in the 80's."

I'd check this out more thoroughly--a one month notice is not very much time, esp if you are scraping to get by now.

JoAnn's answer seems the best one to follow through on.

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My MIL and FIL’s AL/MC facility raised their rates by 5% last month. The owner/Administrator is a wonderful man and sent out a very nice letter explaining why. The cost of food has gone up, all the PPE and extra cleaning costs, and they’ve had to hire additional workers to meet guidelines. That said, in this whole situation they’ve only had 1 resident and 3 staff from her area test positive and they were all asymtomatic. They woman picked it up at a rehab facility. They tested all the other residents. The fact that they contained it so well shows me they are doing a good job! It’s a crunch to the budget for sure, but I think the amount we got increased is more reasonable. BUT he did say that is only about 1/2 of their extra cost.

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I think you’re lucky .. if it’s good facility !!! your monthly payment is
not much for good private facility and I wouldn’t complain.

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Seriously? The INCREASE is $600 a month, not the rate.

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Costs for supplies have gone up and so has needs during this pandemic. You could look for a less expensive place or take your loved one home. Before you make any moves, consider why you placed your loved one in this facility. You may find that it is worth the cost. Also talk to the social worker at the facility to find ways to finance the increase.

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I think this is a bad time to increase rates. AL is offering few to no activities, staff is quitting, and patients have died, at least at the AL where my mom lives. No visitors, including family. I honestly think they are trying to cover costs of empty rooms during the pandemic. With high unemployment, it's hard for children, like me, to help with finances.

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Assisted Living facilities do have rate increases. My mother’s AL has had a 3 to 5 percent increase almost every year. While 14 percent seems high it is dependent upon when the last increase occurred and how often there is an increase. Aides, nurses, cleaning personnel and food service employees are entitled to raises. They work hard. Food costs increase as do utilities and insurance. I would not move someone from a good facility because of a rate increase.

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First of all would like to ask if this is the "care rate" or a general raise for all residents. If a general raise it is quite high. When my brother moved into Assisted Living his papers enumerated just how often they gave raises and under what circumstances, and they said that you should expect a 3% to 5% raise yearly. That was before covid-19 and we all know that it has made a difference in costs of food, in hazard pay in some instances, in PPD for workers, and etc. Also in cleaning and staff. Still, this is a hefty raise and I would at least look at comparison prices. Now if this is a care raise, then that goes according to need. Level one is a person who is basically self caring, can dress, bath, come out to communal dining room, and is safe on feet. Levels go up according to needs for medication nurse, changes of clothing, wheelchairs, food, special diet and etc.
Good luck right now, I would think, in finding another facility willing to take in new residents. It happens but is not easy.

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According to all the ALF contracts I've been involved with, the facility can raise the rates as they see fit and we have no recourse at all other than to move the loved one out. My mother's place gets a rate hike yearly, but it's truly modest at under $200 a month. Bad enough, but not like $600!

I don't think you're 'over reacting', I just don't know that you have any recourse at all.

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Imho, a 14% ($600) rate increase is not at all modest.

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We were given notice that our assisted living facility will increase rates by a "modest" amount (14%) to begin in one month. Any advice?

14 Answers

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