MCF Rate Increases

Dio

Do memory care facilities increase rates at will? I know that they will give you 60-day notice, but other than that, can they just increase whatever rate they want, whenever they want?

sandwichone123

For the most part, yes. Most states minimally regulate "assisted living," which is what many memory care facilities are licensed as. Most are private pay only and they can charge what the market will bear. Nursing homes, which accept Medicare for brief stays, are much more closely regulated, although I don't know how much of that regulates pricing for families.

Dio

What if your sign-in contract specifies a rate—can the MCF not honor that?

terei

I’m sure the contract addesses increases. Normally they can increase at will

Quilting brings calm

Mom’s AL rent increases every January. Plus they’ve been known to increase it between- after the 8.7% inflation year they tacked that same amount on as an additional increase.

Dio

But if the contract specifies the annual increase rate, can they not honor that? I got the notification letter regarding the increase effective blah blah blah, but the rate is higher than what is in my contract.

GothicGremlin

The memory care facility where my sister was had an annual increase every January. Our contract specified that the rates would increase every year, but the amount was left open. I think the rate increase was tied to inflation. This last January the rate increased to 😱

It wouldn't surprise me if there's something in your contract, printed in smaller print that addresses increases.

Dio

Just heard back from the MCF director. He said to disregard the letter. There's an error in billing dept. and that he'll address it when he returns from vacation. Whew!

M1

Good news!! Glad you asked!!!

Dio

Thanks, M1. I specifically asked about annual increases before choosing a facility. Those that left the annual increase rate blank or "according to inflation" or "whenever corporate declares the rate" were no-go. With astronomical prices in CA, funds will run out in no time with such a setup and completely out of my control. I made it a point to negotiate a rate and wrote it into the contract. This way, I'll have better planning. So when I received the letter, it threw me for a loop. A huge loop. Perhaps, billing department forgot about my special rate.