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What is the average cost of a retirement home?

What is the average cost of a retirement home?

According to a study carried out by the General Directorate for Social Cohesion (DGCS) and the National Solidarity Fund (CNAS), the average cost of an accommodation establishment for dependent elderly people (EHPAD) is 2,900 euros per month. (2012 data).

But the cost of a retirement home varies according to the type of establishment, in particular private or public, but also according to its location, in town or in rural areas. A study published more recently by the National Solidarity Fund for Autonomy (CNASA), available on pour-les-personnes-agees.gouv.fr, indicates that the median monthly price of accommodation in an EHPAD in 2016 was 1 €949

This means that half of these structures charge less than this amount, and the other half charge prices above 1,949 euros per month. Where do retirement home cost differentials come from and what do they include?

The cost of a retirement home depends on many criteria

The cost of a retirement home encompasses three types of costs. Those related to the care provided (the care package), those related to accommodation (also called accommodation rate) and those, finally, caused by the accompaniment of the elderly person in the acts of his daily and social life (the rate addiction). The care package is paid directly to the retirement home by Health Insurance to reimburse medical and paramedical care related to the dependency of the elderly person. The dependency rate is set by each county council and according to the degree of loss of autonomy of the resident assessed using the AGGIR grid. It is also the county council that determines the accommodation rate if the establishment is eligible for social assistance. Otherwise, it is established by the management of the retirement home.

Taking all these elements into account partly explains the very wide range of costs for retirement homes. This also varies by region. Unsurprisingly, the average cost of a retirement home is higher in the Paris region:2,780 euros per month in Paris, 2,161 euros in the Paris suburbs, compared to 1,591 euros in the provinces.

To better navigate among the many prices charged by retirement homes, the law defines a precise pricing method for EHPADs. This basis for indicating the cost of a retirement home makes it possible to be able to compare it with the cost of other establishments for the elderly. The government also provides an online price comparator for nearly 7,000 nursing homes in France. This tool allows elderly people and their relatives to find out very easily the prices charged by retirement homes, private or public, located within a given geographical radius and to simulate the remaining charge for the resident of a given retirement home. .

Aid to finance the cost of a retirement home

Older people with modest incomes have the possibility of getting help to finance part of the cost of a retirement home. There are three main aids:

  • social assistance for accommodation (ASH), paid by the department if the establishment is authorized to receive recipients of social assistance
  • personalized housing assistance (APL) if the establishment is under agreement or social housing allowance (ALS) for the part of the bill relating to accommodation
  • the personalized autonomy allowance (APA) for the part of the bill relating to the dependency rate.

The ASH and the APA depend on the resources of the elderly person who lives in a retirement home.

Taxable seniors can also benefit from a tax reduction.