I was checking into some AL and MC facilities for a friend and man was I shocked. The prices do vary and quite a bit. There are thousands of dollars difference in the same things. What really caught my attention was the $2500.00 move in fee. This is just to let you in the door and move in. It's not them paying for packing, unpacking, transport, etc. I spoke with two places who had them. One place was only $1500.00. I'm just curious as to whether this has become common. When, I was researching ALs in 2014, no one mentioned a move in fee.
My Dad still lived in his house, paying property taxes, utilities, doing the fixing up and maintenance and here he was in his 90's and a fall risk. He worried so much about the snow and wanted to shovel the driveway. With caregivers he was able to stay in his house, but the $20k per month was always on the top of his mind.
He decided one day to move to Independent Living where he could have his own 2 bedroom apartment, with living room, and a full size kitchen. He said that would work. And the cost of the apartment was $4k per month. At that price, Dad was able to bring his favorite private caregivers to work mornings to get him ready and make him breakfast and lunch. It was a good routine for him. Dad saved for this "rainy day".
Dad loved the housekeeping service that would come in once a week... linen service once a week... if something broke, he could call maintenance... and Dad got supper in the main dining room, the food there was excellent. Dad said he felt like a King in that place, so I was so pleased he was happy :)
Now I do realize that isn't the case everywhere, especially if there is only one IL/AL facility in an area. Where I live, there is a lot of competition. Dozens upon dozens of such facilities.
Another way of looking at price, what is the cost of a regular apartment that anyone could rent? In my area, apartment rentals can go up to $1,500 per month. So subtract that amount from the IL monthly cost. Then you will have the total cost of all that is included.
The buy-in is a means for the facility to cover the costs incurred in getting a new resident, whether paperwork, physical and mental assessment, or remodeling.
You can complain all you want about the price and how seniors are being gouged, but the fact is that the marketplace will provide competition for a place that is overpriced. I don't think facilities are colluding to set high prices. They are probably looking at how their competitors set their fees and trying to assign the income they get to the costs they incur as much as possible. That's just business.
As freqflyer points out, we will all be better off in our senior years if we save for that rainy day. It's a choice we ought to make early in life. If you haven't chosen to save and prepare for retirement, you have made a choice to live in poverty; and you get to live with your own choices.
But we got lucky, they were offering the first month's rent free if we moved in before the 1st of the year. Which was twice what the move in fee was.
Then there is the assessment of the elder to make sure the elder is able to live successful in Independent Living or would be better off in Assisted Living. The assessment is quite a booklet, and the Staff needs to review to make recommendations.
Plus list of doctors/dentist/specialist that my Dad is using. And keeping on file his Living Will and DNR.
Diet assessments are also done. My Dad is lactose-intolerant so the kitchen needs to take note of that. I was able to bring in special ice cream for Dad that the dining room kept in the refrigerator for desert.
Then the Nurse needs to transfer all the meds that the elder is taking so that the elder is using the pharmacy that had bid to be the pharmacy for the facility. And to set up a schedule for once or twice a day a qualified Aide to give the meds to the elder.