Experts estimate that 33 percent of men and 52 percent of women 65 years of age and older will need some type of long-term care in their lifetimes. Yet few of us put much time, thought or resources into planning ahead for our family's future long-term needs including paying for a nursing home.

With average Michigan yearly nursing home costs exceeding $60,000, how can we access and afford skilled nursing facility services when we need it?

There are three common ways to pay for a nursing home:

• Personal savings and assets. Individuals with savings typically use their income and savings to pay for costs out of pocket.  Unfortunately, few people accumulate the necessary wealth to be able to cover all of their needs without assistance from long-term care (LTC) insurance or taxpayer-funded programs like Medicaid.
• Long-term care insurance. Purchasing LTC insurance is an excellent way to plan ahead for the personal care and assistance you may need in the future. Covered benefits are paid from a chosen policy to help with LTC services that are not covered by health insurance: such as assistance with eating, dressing and bathing. These benefits can help individuals protect savings and assets, retain control over their plan of care and reduce the impact on family members. LTC insurance plays an important role in a comprehensive financial plan. 
• Medicaid. Nearly 70 percent of all nursing home residents spend down their personal assets and going on Medicaid, a taxpayer funded program intended to provide health services to the poor. Unfortunately, even many middle class and higher income individuals end up on Medicaid to cover their long-term needs. Medicare, also funded by taxpayers, covers minimal, medically necessary LTC services.

© 2008 by Health Care Association of Michigan

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Other articles on nursing home care:
Nursing Homes in Southeast Michigan
Choosing the Right Nursing Facility
Government Help Paying for Nursing Facilty Care