adminNationally, healthcare and long-term care costs continue to rise. According to Genworth Financial in Pennsylvania, particularly in the Harrisburg region, the cost of a private nursing care room in 2021 averages $130,488 per year. These costs are mostly private pay since health insurance provides limited coverage. When it comes to paying for personal care (or assisted living) in the same region of Pennsylvania, the average cost is $58,281 annually. None of which is covered by Medicare or any other type of health insurance. Bottom line- long-term care is expensive. Plus the misconception that Medicare and other health insurances cover these costs at all or indefinitely is incorrect.
Messiah Lifeways at Messiah Village is a non-profit Continuing Care Retirement Community (CCRC). Founded in 1896 in Harrisburg, today we have over 700 residents living on our campus located in Mechanicsburg, PA. As a CCRC, we provide three distinct levels of living. First is Residential Living (independent) and two care options: Enhanced Living (licensed as Personal Care) and Nursing Care. When it comes to paying for these two healthcare options, we operate as a fee for service provider. This means individuals pay for the care they need on a monthly basis. In contrast, Residential Living residents pay an entrance fee with refund options that amortize over time.
A closer look at Messiah Village
Messiah Village is comparable in cost to other CCRCs throughout the state. As a Christian-based not-for-profit care provider, we function as a business and a ministry. As such, we must balance our benevolence and charitable efforts while maintaining a business model that is sustainable. Part of that effort is assessing applications for medical, social, and financial qualifiers. Compared to our annual costs, we evaluate how long an applicant would be able to pay their own way presently and into the future based on their finances and other factors such as age. This also helps to actualize the need for subsidies and benevolence in the future.
As a ministry of the Brethren in Christ Church, the benevolent funds provide care to residents who are unable to pay fully for their needed services, and it allows residents who outlive their assets to live here for as long as they need to, without the fear of being asked to leave. This is one of the most valuable and amazing advantages of a CCRC. Residents are here for as long as they need to be and treated no differently than anyone else. Plus as their needs change, everything they require is right here on one campus.
The need for charitable or subsidized care continues to grow, especially as residents are living longer and rapidly outliving their assets. Each year, the organization provides millions of dollars in benevolence, charitable care, and contractual loss. Residents in Enhanced Living and occasionally in Residential Living benefit from the benevolent care fund. Those who can no longer afford to pay for nursing care must apply for state subsidized Medical Assistance, which only pays for a portion of their actual daily charge. The remaining balance is a contractual loss that the organization must absorb. Though we’d love to extend our spirit of giving to everyone we come in contact with. But the reality is that we cannot do that while simultaneously providing quality care and fair wages to employees, plus the maintain our facilities to a higher standard – without having financial parameters to follow.
For those that are delving into the world of long-term care for the first time, sticker shock, compounded by the potential denial of their application can be hard to accept. But hopefully this article provides some insight and understanding around our costs, the application review process, and maintaining a balanced business model.
Entrance into a CCRC, however, might be more affordable than you think! Check out this helpful resource to see how your current expenses relate to the expenses you’d experience in Residential Living at Messiah Village: “Dollars and Sense.”
If you’d like to learn more about Messiah Lifeways at Messiah Village, our social accountability, and our commitment to serving older adults with Christ-like love, please check out these additional resources. Or contact our Welcome Center at life@messiahlifeways.org.
messiahlifeways.org/needsassessment/
messiahlifeways.org/blog/non-profit-nursing-homes-offer-certain-advantages/
messiahlifeways.org/blog/financial-stewardship-medicaid-and-long-term-care/
