WORTH THE READ
Inflation Stress: Rising Costs of Senior Living Homes
October 13, 2022 - 1 MINUTE READ
Inflation is causing increases at nursing homes and assisted-living facilities, which is tough for seniors living on fixed incomes. Facilities are raising prices and adding new fees to help offset their costs, straining older Americans and their families. These new fees are on top of recently increased prices, which usually rise 3% to 5% annually.1
A recent study done by the University of Chicago concluded that by 2033, 11 million middle-income seniors age 75 and older might not be able to pay for senior living facilities.1 This group is also unlikely to qualify for Medicaid, leaving them more dependent on family for help. Along with raising monthly room and care fees, some providers increased entrance fees-one time charges to secure a living space. Families who can’t afford these higher rates may have to move their loved ones to a more affordable option, where the care usually is not as good.
To help offset these costs, many seniors choose a Long Term Care (LTC) policy to ensure coverage when they need it in the future. With so many options and choices out there, be sure to do your homework before selecting a plan. Every plan and carrier is different, knowing exactly what type of coverage you are getting is vital. Inflation is likely being felt in all areas of your life, with the rise in healthcare costs, it’s important to factor these in for your future self.