✨ Pricing; Costs; Finances

It would be interesting to use this new NaCCRA Forum, among other things, to share our CCRC monthly fee increases for 2025.

At our CCRC, very high inflation rates in 2022 (9% CPI in Denver Colorado) resulted in record high percentage increases (7.9%) in our independent living monthly fees for 2023. And the continuing high Colorado inflation in 2023 (5.5% CPI) resulted in a similarly high 5.5% increase in IL monthly fees for 2024. Continuing Care fees increased 10% (for newcomers to CC).

Now that the inflation rate for all urban consumers ("CPI-U"), nationally, is only 2.4% year-over-year as of last month, what will the CCRC fee increase be for 2025? At our CCRC, that will be announced in late November.

At your CCRC, what is your rate increase for 2025 for independent living? For continuing care? Did you experience higher percentages in the high inflation years, and a lower increase for 2025, consistent with the decline in CPI inflation?

Barry Peters

CCRC: Wind Crest (Colorado); Erickson Sr Living

The 2025 fee increase for Riderwood, another Erickson community in the greater Wash, DC region, will be 4.5 percent for IL. There is no mention of the CPI.

In addition, an Ancillary Fee Schedule (pay for service) for a range of resident services was also included.

The cover letter from the executive director reads, in part:

"Every October, our community Bd of Directors meets to review and discuss Riderwood's programs, services, and planned initiatives with the community management team. They also receive updates on important factors that increase our operating expenses, such as employee wages and the cost of food and utilities, as well as inflationary projections."

Hi, Marion. The 2025 increase for independent living residents at Linden Ponds, also managed and operated by Erickson Senior Living, is 3.75%. Coincidentally (?), the opening paragraph of your fee letter, except for the Community's name, is identical to ours.

Jay Cushman

Hi Marion, Erickson's "Ancillary Fee Schedule (pay for service) for a range of resident services was also included" but omits services provided to a favored few — not ALL residents. For example:

EV charging outlet in resident's indoor parking spot;

Garden plots for some residents;

Kayak's stored and displayed in indoor garage;

Publicity for Erickson's favored "Residents Advisory Council (RAC) that was founded by Erickson.

RAC remains in violation of § 38.2-4910. Right of organization.

A. Residents shall have the right of self-organization. No retaliatory conduct shall be permitted against any resident for membership or participation in a residents' organization or for filing any complaint. The provider shall be required to provide to the organization a copy of all submissions to the Commission.

Similar publicity is not provided to Ashby Ponds Residents Association (APRA) now forming that is in compliance with the Code of Virginia § 38.2-4910.

https://law.lis.virginia.gov/vacode/title38.2/chapter49/section38.2-4910/

Good morning Marion!

The increase letter for Greenspring, another Erickson community, is 4.25 %. The boilerplate language is the same as that in the Riderwood and Linden Ponds letters, which should not be a surprise, given that the Boards of Directors are essentially identical. It was especially surpring, since we have generated a nice surplus this year with actual occupancy rates exceeding the budgeted rate by 2% or more.

There was a meeting with National Senior Community Finance Managers and Board members earlier this year. (NSC controls all the Erickson CCRC's and appoints the Boards). During the meeting, the question was raised about wether 2024 surpluses would be used to mitigate increases for 2025. At the time, they "danced" around the question, but apparently did not factor those surpluses into plans for 2025. Erickson Management will hold a "Town Hall" meeting on December 5th, but with only one hour allotted, there will not be time for many questions after they go through the canned presentation

As an example of the importance of looking at a sequence of 5-10 years when reviewing the pricing of a CCRC, here is a table that combines two factors -- CPI inflation rates and Social Security COLAs -- when examining a CCRC's increases in monthly fees (per annum, and as an average over the most recent 5 years):

[The table was edited on 11/2 to correct the Denver CPI-U inflation percentages]

Sources: (1) US Bur of Labor Statistics; (2) Social Security Admin; (3) slides presented by management to Wind Crest residents in Town Halls, 2021-2024

Barry Peters

CCRC: Wind Crest (Colorado); Erickson Sr Living