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Can Assisted Living Facilities Raise Room Prices Annually?
Date Updated: July 26, 2024
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With over a decade of dedicated experience, Andrea Miller boasts an extensive background in healthcare writing and editing. Her expertise spans various facets of the healthcare industry, with a particular focus on nursing, senior care, Alzheimer’s disease, and public health. Andrea has also contributed her editorial talents to reputable publishers in the Philadelphia region, complementing her extensive freelance work.
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Rachel is a skilled finance manager with a Master of Accounting and a Bachelor of Arts in English. With 10 years of experience in finance, she specializes in business, finance, law, real estate, and marketing. Rachel has worked in personal financial planning, wealth management, and tax accounting, serving senior clients, and has spent nine years in corporate financial planning and analysis. Currently, she manages finances for a Fortune 500 company in New York City.
How much do assisted living rates increase each year?
Assisted living rates nationwide increase by about 4.65% each year, according to data from the Genworth Cost of Care Survey. For example, if you pay $5,000 per month in 2024, expect your monthly rent to increase to around $5,232.50 for 2025.
Why do assisted living rates increase every year?
Assisted living communities raise rates every year to reflect the rising cost of operations. Increases cover the cost of staff time, which has become more expensive as many states face nursing shortages. In addition, facilities face rising costs for employee certification, equipment and regulatory fees.
How much will assisted living cost in the future?
Assisted living will cost an average of $6,608 per month across the U.S. by 2034. By 2044, rates could rise to about $8,881 per month, based on projections from Genworth.
How do families pay for assisted living?
Families use a combination of methods to pay for assisted living for a loved one. Common strategies include cashing in life insurance policies, purchasing annuities and getting a reverse mortgage. Some people qualify for state Medicaid waivers or veterans benefits, which help pay for assisted living.