1. Personal Savings: Of course, a person may pay for there own long-term nursing care. This will maximize the number and location of nursing home from which to choose. However, it takes a lot of money to pay for an extended stay in a nursing home. The average cost of nursing home care in Michigan is nearly $5,400 per month, or almost $65,000 per year. As a result, the cash resources of most people will quickly run out.
2. Family Members: Family members may also contribute to cost of nursing home care if they can afford it. This is not an attractive option for most people because they do not want to burden their families with such an onerous financial obligation.
3. Private Long Term Care Insurance: This option depends upon age and the ability to pay the required premiums for an extended period of time. The advantage of long-term care insurance is that you may have more money available for your care when you need it most. The disadvantage is that you may pay premiums for long period of time, and yet never need the insurance coverage. The premiums are a function or your age, health, length of coverage, and the events that trigger payment of benefits. There are several insurance companies with a strong record of coverage in this area. We do not sell or recommend coverage, but we can direct you to experienced agents who can.
4. Government Assistance: Persons who cannot afford to pay for their own long term care may obtain benefits through the Medicaid program. Medicaid is a needs-based program, which generally means that you will have to use most of your own financial resources before you may receive any benefits. Medicaid is administered by the Family Independence Agency (FIA) in Michigan.
