inflation and long term care facilities

Marie58

I received a notice that rates are going up at DH's MC facility because of inflation and staff pay  raises. Same thing happened last September. You can bet I'll be asking the caregivers if they are actually getting a raise (I know them all pretty well). Anyone else experiencing this?? I'm just curious.

Quilting brings calm

My parents assisted living has an annual increase built into  their lease. 6% a year on the fee for the first person.  The companion fee doesn’t go up. When I just inquired about moving  lthrm from a two bedroom to a one bedroom, they weren’t going to save over $350 a month  because they would need  to sign a new contract.  The new contracts charge $500 more  a month for the second person than their current one does.  

Two increases a year seems a bit much to me. 

Ed1937

My daughter and I toured a facility this morning. We toured the same place almost a year ago to the day. Their prices have not changed. I'd be asking questions too, although they might have a legitimate reason.

toolbeltexpert

I visited a facility yesterday that I got pricing from late last year, no solid answer but at least 100 a month. From 3600 to 3700 if it's only a 100 that is the first level, they have 2 more levels highest starts at 3900 if I remember correctly. 

This is my number one pick and it is personal pay. I just couldn't afford to long without selling the farm.

IWBH1990

My DW went into a MC last May 12th at Level 3 of care. Two months later in July there was a 6.2% increase blamed on having to give staff more $$ to retain them. In January there was another increase which brought it to 9.3% increase since was admitted. She is still at Level 3 of care now.   If and when she goes to Level 4 (the top level of care/assistance) there will be another increase. 

Dave

Stuck in the middle

Wages, utilities, food, and cleaning supply prices are increasing across the board.  I don't see how NH prices can hold constant in that economic environment.

Inflation is called "the cruelest tax" because it falls hardest on people who live on small, fixed incomes.  Like most of us.

Crushed

Stuck in the middle wrote:

Inflation is called "the cruelest tax" because it falls hardest on people who live on small, fixed incomes.  Like most of us.

Actually that was a slogan invented by  Friedman representing  wealthy stockholders and bondholders whose solution was always to induce a depression to crush wager earners while at the same time cutting benefits for the poor.
Social security is inflation adjusted  

 
 

Stuck in the middle

Friedman was better known for describing inflation as taxation without legislation.  He was against it, as you stated.  

Ella T. Grasso, a Democrat and governor of Connecticut, called inflation the cruelest tax, but I don't know that the idea was original to her.  Unlike Friedman, she did seem to care what happened to working people.

Indexed pensions help, but there is a lag.  You get a raise in January, rising prices erode it for a year, then you get a raise that raises your purchasing power to what it was a year ago, and the erosion resumes.  The taxes and insurance for my house just went up $100 per month, and I won't see a COLA until January.  I can handle it, but I don't like it.

No one likes inflation except major debtors, like real estate developers.  Something both parties can agree on.

Jo C.

Individual MCs seem to have their own way of "adjusting" their rates and it is anyone's guess, but of course never down (as if).  Once there is a trend most all seem to hop on the train going the same direction. 

Where we are located, NH rates go up about 7% each year for those who must pay privately.  Costs do go up for care facilities and they are passed on to the patients/families.  In a facility that is contracted with Medicaid as well as having private pay patients, it is the private pay patients/families that get hit with the increases as usual as Medicaid does not make much in the way of adjustments if anything from year to year.

Just seems so unbalanced and well; actually, "wrong."   We are pretty much powerless in the face of it.

J.

Quilting brings calm

My earlier reply turned out to be incorrect.  I was at my parents’ AL yesterday and I checked out the papers mom had on the top of the filing cabinet. She no longer files anything.  Lo and behold, there is a monthly statement from the facility in a envelope  with just their apartment  number on the outside - so hand delivered. The statement was for the current month, and the amount was $75 higher than normal.  Note: this is in addition to that 6% increase a few months ago.  

So today I call the office manager. ‘ Oh, the home office raised everyone’s rent due to inflation and minimum wage increases’ Um, isn’t that what annual 6% increase is for?  Supposedly they gave  them a letter.  So I explain to the office manager ( she has been there 6 months) that it is useless giving my parents the statement and letter.  The former admin staff ( manager and director) would send the statement through the mail to me when a change was made.  So this manager said I will put you as the a/r guarantor.   Um , no,  I am not responsible for my parents’  bill. I do make sure their bills are paid/ with their money, not mine.  I really miss the staff from 2.5 years ago.  They understood their residents capacities.  This young lady does not even though she’s there every  day,   

Crushed

Stuck in the middle wrote:

Friedman was better known for describing inflation as taxation without legislation.  He was against it, as you stated.  

Ella T. Grasso, a Democrat and governor of Connecticut, called inflation the cruelest tax, but I don't know that the idea was original to her.  Unlike Friedman, she did seem to care what happened to working people.

Indexed pensions help, but there is a lag.  You get a raise in January, rising prices erode it for a year, then you get a raise that raises your purchasing power to what it was a year ago, and the erosion resumes.  The taxes and insurance for my house just went up $100 per month, and I won't see a COLA until January.  I can handle it, but I don't like it.

No one likes inflation except major debtors, like real estate developers.  Something both parties can agree on.

 

The debate over inflation and the money supply goes back to the 19th century and   bimetallism. 
  The Free Silver Movement was a political movement that proposed returning to “bimetallism”: Those in the movement wanted money backed by silver to be added to the money supply, which was backed by gold. Adding to the money supply would have ended the deflation and created the possibility of inflation.