To calculate the maintenance fund in 2017, three primary methods were used: the percentage of income method, the cost-of-living adjustment (COLA) method, and the total annual cost method. The percentage method applied a fixed percentage (typically 3-5%) of the client’s monthly income. The COLA method adjusted the fund by the annual inflation rate, which was 2.1% in 2017, based on the Consumer Price Index (CPI). The total annual cost method summed all projected expenses for the year and divided the result by 12 to determine monthly contributions.

The choice of method depended on factors like income stability, inflation trends, and long-term care cost projections. In 2017, the National Caregiving Association recommended the percentage method for simplicity, especially for clients with predictable incomes. However, the COLA method was favored for clients in regions with higher inflation or those requiring long-term adjustments. Data from the Bureau of Labor Statistics (BLS) showed that the average CPI inflation rate in 2017 was 2.1%, making COLA adjustments a practical way to preserve purchasing power. For example, a client contributing $500 monthly via the percentage method would need a $5.25 increase annually under COLA to offset inflation. The total annual cost method was less common due to the complexity of tracking all potential expenses, though it provided precise funding for specific needs like medical equipment or home modifications. These approaches ensured financial preparedness while aligning with 2017 economic conditions and regulatory standards.