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The amount you pay for assisted living in Michigan is determined by many cost factors.
Those include facilities and housing available, services and staffing included, insurance coverage you have, and government programs you qualify for.
Those facilities generally provide assistance with ADLs, but in Michigan, there’s no official category “Assisted Living Facility”.
Instead, the State Terminology for it is “Adult Foster Care” or “Homes for the Aged”.
You’re looking for a licensed, certified, and accredited assisted living facility, so you’re looking for a “Adult Foster Care” or “Homes for the Aged” - which come in all sizes where AFCs have less capacity for people living-in than HOAs.
Click here to read the official Michigan.gov page about Adult Foster Care / Homes for the Aged.
In the end, Michigan is no different than other states. When selecting an assisted living facility, you make tradeoffs based on limited financial resources, limited insurance coverage, and limited eligibility for government programs.
Today, I’ll show you the results of my internet research, and estimate Michigan’s cost of living for elderly individuals in 2023.
Graycare is NOT a Doctor, Lawyer, or Financial Advisor.
This research was published and updated in 2023.
Different people mean different things when they say “Assisted Living”.
Just so we’re clear, we’re talking about a residential community for elderly people who require assistance with “Activities of Daily Living” (ADLs) but do not require 24-hour skilled nursing care.
Assisted living facilities come in the “luxury” and “budget” varieties, and you make tradeoffs with your limited resources when selecting the most suitable one.
You’ll find yourself asking the question over and again: “What level of quality am I willing to accept, that’s also within my financial limitations.”
The assisted living provider is the most direct source of cost. Whatever their billing people put in your plan (whether you know it or want it or benefit from it or NOT), is what you’re paying for.
There’s the building, the equipment and supplies inside it, and the recurring cost to operate, maintain, and upgrade it all. Yikes!
It costs a ton to own and operate a physical location which meets the National- and State-level standards for a licensed assisted living facility.
Century21 sells commercial property in Gratiot County, Michigan - for example - and the good properties easily cost over $1,000,000, $2,000,000, $3,000,000, or more.
Commercial properties suitable for assisted living operations aren’t available for lease (rent) in Gratiot County - not that I can find.
The point is, owning and operating an assisted living building is expensive. Only businesses with enough capitol to buy a property and equipment could feasibly start, own, and operate an assisted living facility.
Starting an assisted living facility is not feasible for the finances of a Michigan Blue Collar Worker.
But now you might better understand the pressures an assisted living facility business owner has under their belt.
Equipment costs several thousand dollars per “Unit” (per room, apartment, house, or other living unit) where the elderly person will live assisted.
The State of Michigan published a handy PDF: Common Business Costs for Michigan Business Owners. The list includes some costs of assisted living in the “MEDICAL OFFICES” category.
Due to inflation, $1 in 2003 is worth $1.65 in 2023 $1.00 in 2003. So you can expect these costs today:
You wonder why business owners are complaining “Nobody wants to work anymore.”
While pressing worker wages low - because assisted living facilities seem to survive by properly cutting costs where possible, and personal care to the elderly is a historically marginalized role. (Stereotypically handled by women and minorities.)
It’s a double whammy when it comes to assisted living facility staffing.
The “Staffing Ratio” means how many staff to how many seniors living there. More staff per patient means higher cost.
The “Staff Qualifications” means what each staff can do in terms of non-medical care, general medical care, or specialized medical care. Specialized staff demand high salaries, so assisted living facility HR mix entry-level with senior-level staff to provide the necessary care and save cost.
As the baby boomers live well into a ripe old age (like Big Poppa himself), the general industry of senior care and services for the aging is under immense pressure.
In the decades to come, the issue is only predicted to get worse.
It provides a combination of housing, personalized care, and supportive services to help residents maintain their independence and quality of life.
Assisted living facilities typically offer a range of services, including assistance with medication management, bathing, dressing, meal preparation, housekeeping, transportation, and social activities.
I can’t write too much on this topic, because my family things we’re too middle class to qualify for government assistance programs beyond that of Medicare which already covers some in-home care for us.
The point is, I can’t give you definitive info here, because I haven’t successfully availed of a government program to cover the costs of assisted living for my aging father. I can tell you what I know.
The Michigan local Agency of Aging in your Zip Code is best suited to connect you with Government Assistance Programs for seniors in your area. For citizens of Gratiot County, MI - for example - the Region 7 has a helpful services section with medicare, medicaid, social security, and other financial, legal services.
Click here to view the Region 7 AAA’s Medicare/Medicaid Assistance Program page.
A good assisted living facility will provide a custom care package to meet your needs.
If you've got mobility challenges, cognitive decline, or other aging related diseases. Usually, it costs more.
The level of care needed drastically affects price.
Memory care is infamously expensive, for diseases like dementia and Alzheimer's.
It’s your duty to check the invoice. Like reviewing receipts, it’s due diligence to stop greasy old people's homes from overcharging you.
The senior moving in might have preference for the size, type, or location of the assisted living facility. Likewise for family members concerned for their well-being, and maintain certain housing preferences.
The sad truth is, our senior living facilities are riddled with overtly complex service pricing models.
The add-ons and amenities add-up to a pretty penny. Like meals, housekeeping, laundry, transportation, medication management, and specialized treatments. Required by circumstance or requested by preference.
Assisted Living Facilities make economic sense.
Moving a person to a facility should cost less than moving the facility to the person.
Bringing the senior to a facility with eldercare staff and equipment - therefore - should cost less than bringing the eldercare staff and equipment to the senior’s home.
How do assisted living costs compare to in-home care costs in Michigan?
Assisted living care costs ≈$4,000 in Michigan. In-home care costs ≈$5,000 in 2023. So it’s neck-and-neck, which makes figuring out the right path for your loved one even harder.
Choosing assisted living doesn’t necessarily mean 24/7 care. Your carereceiver might not need that level of care yet. Instead, you can also get assisted living for a day at a time or a few days a week.
For family caregivers, “just a few hours a week” might be a good compromise that gets your carereceiver the care they need and gives you a little vacation from your caregiver responsibilities.
In Michigan, you can expect $300 per day for a day at the nursing home, but there may be less expensive Adult Day Care services available for as low as $77 per day.
Full-time assisted living will likely cost you between $3,750 to $6,000 depending on where you live in Michigan.
UPDATE October 3, 2023 - This post contained screenshots from third party websites, but these screenshots are now removed to better comply with webmaster best practice.
