{"id":43323,"date":"2018-04-10T13:23:31","date_gmt":"2018-04-10T13:23:31","guid":{"rendered":"https:\/\/one.sightlinemg.com\/marinecorpstimes\/uncategorized\/2018\/04\/10\/officials-to-raise-residents-fees-at-troubled-armed-forces-retirement-home\/"},"modified":"2026-08-08T07:26:57","modified_gmt":"2026-08-08T07:26:57","slug":"officials-to-raise-residents-fees-at-troubled-armed-forces-retirement-home","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/marinecorpstimes\/pay-benefits\/2018\/04\/10\/officials-to-raise-residents-fees-at-troubled-armed-forces-retirement-home\/","title":{"rendered":"Officials to raise residents\u2019 fees at troubled Armed Forces Retirement Home"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Many residents at the <a href=\"https:\/\/www.militarytimes.com\/pay-benefits\/2018\/03\/07\/ig-pentagon-failed-to-address-financial-problems-of-armed-forces-retirement-home-2\/\" title=\"\" class=\"\" target=\"_blank\">Armed Forces Retirement Home <\/a>\u2015 particularly those with higher incomes<a href=\"https:\/\/www.militarytimes.com\/pay-benefits\/2018\/03\/07\/ig-pentagon-failed-to-address-financial-problems-of-armed-forces-retirement-home-2\/\"> <\/a>\u2015 will begin paying higher monthly fees in October as<a href=\"https:\/\/www.militarytimes.com\/pay-benefits\/2017\/11\/14\/retired-army-major-general-takes-top-job-at-troubled-armed-forces-retirement-home\/\" title=\"\" class=\"\" target=\"_blank\"> officials <\/a>look to cover more of their operating costs, shore up <a href=\"https:\/\/www.militarytimes.com\/veterans\/2017\/09\/14\/dod-fires-armed-forces-retirement-home-boss-over-refusal-to-enact-new-revenue-plan\/\" title=\"\" class=\"selected-link\" target=\"_blank\">AFRH finances<\/a> and decrease the need for taxpayer dollar bailouts.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">More than three-fourths of the residents live in independent living units, where the average monthly fees paid will increase by about 55 percent<a href=\"https:\/\/www.militarytimes.com\/pay-benefits\/2018\/03\/07\/ig-pentagon-failed-to-address-financial-problems-of-armed-forces-retirement-home-2\/\"> <\/a>\u2015 from $1,226 to $1,895. The cost of providing that independent living unit and associated services such as three meals a day, health care services, transportation and activities is $3,054. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThis is a difficult thing to do and not an action we take lightly,\u201d said retired Army Maj. Gen. Stephen Rippe, chief executive officer of the Armed Forces Retirement Home. \u201cEach resident served our nation in uniform, and their experience in the military and the circumstances they live with today as a result of that service are deeply personal.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The AFRH has 858 residents on two campuses<a href=\"https:\/\/www.militarytimes.com\/pay-benefits\/2018\/03\/07\/ig-pentagon-failed-to-address-financial-problems-of-armed-forces-retirement-home-2\/\"> <\/a>\u2015 one in Washington, D.C., and one in Gulfport, Mississippi. It can accommodate 1,056 residents. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The fee increase comes as the result of an analysis of the cost for each level of care at the facility, and an analysis of residents\u2019 income.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe realized when we determined what our cost was, that our maximum fee was dramatically less than that. We had residents who could afford to pay full cost in independent living but the taxpayer was heavily subsidizing it,\u201d said Rippe, who took over as CEO of AFRH in November. He and his staff have been analyzing operations and looking at new ways to bring in more revenue. <\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/militarytimes\/management\/pay-benefits\/2017\/11\/14\/retired-army-major-general-takes-top-job-at-troubled-armed-forces-retirement-home\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"127\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/afrh-w-from-afrh-website.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">Retired Army major general takes top job at troubled Armed Forces Retirement Home<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">New leader tapped for the financially strapped Armed Forces Retirement Home, which houses about 1,000 former enlisted members.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">AFRH and DoD officials have been examining every aspect of the AFRH operations, in the wake of a serious cash flow problem that resulted in nearly the AFRH trust fund. It declined from $186 million in 2010 to $46 million in 2015.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">AFRH has been operating at a deficit of about $20 million a year, with the shortfall being made up by taxpayers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Independent living fees are now capped at $1,458 a month or 40 percent of income, whichever is less. New fees will be capped at the actual operating cost of $3,054 or 60 percent of income, whichever is less.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While 10 percent of residents will be paying the maximum amount, others will see increases because the calculation will require a higher percentage of income. For those paying less than the operating costs, the difference is subsidized by the 50-cent-a-month deduction from active-duty enlisted service members\u2019 paychecks and fines imposed on enlisted members for disciplinary violations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Rippe held a town hall with residents Monday morning at the Washington, D.C., campus, and video conferenced with the Gulfport residents.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe reaction when we talked to residents was positive,\u201d he said. The majority of residents have income in the $40,000-a-year range, he said, and many have done research and know the AFRH cost is less than that of other similar facilities.<\/p>\n\n\n<figure class=\"wp-block-smg-jwplayer-video\"><atype-video-jwplayer nostick=\"true\" playlisturl=\"https:\/\/cdn.jwplayer.com\/v2\/playlists\/fCzRqMW8?tags=75708592-ab8c-4241-bad7-8953ac8baa63\" aspectratio=\"16 \/ 9\" mute autostart=\"false\"><\/atype-video-jwplayer><figcaption class=\"wp-element-caption\">With locations in Washington, D.C., and Gulfport, Mississippi, the Armed Forces Retirement Home houses about 1,000 former enlisted service members.<\/figcaption><\/figure>\n\n\n<p class=\"wp-block-paragraph\">\u201cThere are obviously a few people who are disgruntled, especially the people that are in the higher income range \u2015 $60,000, $70,000, $80,000, $90,000 a year, whose fee actually more than doubles,\u201d he said.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One resident of the Washington campus contacted by Military Times disagreed with that overall assessment. He said the fee increase essentially amounts to a 20 percent pay cut, and that residents are \u201cunhappy and disappointed.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIt\u2019s the main topic of conversation\u201d at the home, he said. \u201cThere will probably be a mass exodus soon. I will be one of them.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThis is a sad story because it will do little to solve the problems. We\u2019re in this situation because of the gross mismanagement over the past five or six years. &#8230; The real losers are the ones who are too old to leave. They have no options.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">No current residents in the level of care of assisted living, long-term care and memory support will pay the new maximum amount because of their income levels, Rippe said. Average fees in those units will drop by 21 percent, to about $2,120 a month, because while the maximum payment will more than double ($10,626 for memory care, $10,413 for long-term care) the income percentage limits will drop from an 80 percent maximum to 70 percent.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"801\" src=\"\/wp-content\/uploads\/2026\/08\/retired-Army-Gen.-Stephen-Rippe-CEO-of-AFRH.jpg.jpg\" alt=\"\" class=\"wp-image-88213\" srcset=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/retired-Army-Gen.-Stephen-Rippe-CEO-of-AFRH.jpg.jpg 1200w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/retired-Army-Gen.-Stephen-Rippe-CEO-of-AFRH.jpg.jpg?resize=300,200 300w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/retired-Army-Gen.-Stephen-Rippe-CEO-of-AFRH.jpg.jpg?resize=768,513 768w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/retired-Army-Gen.-Stephen-Rippe-CEO-of-AFRH.jpg.jpg?resize=1024,684 1024w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><figcaption class=\"wp-element-caption\">retired Army Maj. Gen. Stephen T. Rippe, (Ret. Army), new chief executive officer of the Armed Forces\nRetirement Home, is taking steps to shore up the finances of the troubled Home&#8217;s facilities at the Washington D.C.  campus, pictured here, and at Gulfport, Miss. (Alan Lessig\/Staff)<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">According to surveys by John Hancock and Genworth Financial, the monthly fee maximums are similar to costs for a private room in long term care in the Washington area. However, those commercial facilities don\u2019t include many of the services AFRH offers, Rippe said. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There is no financial test for AFRH residents; eligibility is based on status generally as retired enlisted members ages 60 and older; and certain other former enlisted members incapable of earning a living. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Rippe and his staff have been studying other options for increasing the revenue of the AFRH. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>The home for retired enlisted members raises fees to cover more of its operating costs.<\/p>\n","protected":false},"author":7,"featured_media":88211,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":15,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[101,85,25,15],"tags":[],"coauthors":[3302],"class_list":["post-43323","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news-roundup","category-military-retirement","category-newsletters","category-pay-benefits"],"acf":{"subheadline":"","legacy_arc_id":"7JF7JIDZZ5BENIFALV57ELCBG4","arc_canonical_url":"\/pay-benefits\/military-retirement\/2018\/04\/10\/officials-to-raise-residents-fees-at-troubled-armed-forces-retirement-home\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented By:"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v28.1) - 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