Paying for Assisted Living in Michigan
Family caregivers who are exploring options for assisted living in the state of Michigan are sometimes confused about the costs and how they will pay for their aging loved one's care.
According to the 2014 Genworth Financial Long Term Care Cost survey, the average cost per year for assisted living in Michigan is $38,900. With numbers that high, it is easy to see how Michigan caregivers find the financial expenditure for assisted living overwhelming.
Typically, the financial resources families use to pay for assisted living in Michigan are:
- Private funds: The family’s private funds, assets, and investments.
- Long-term Care Insurance: The majority of long-term care insurance policies include a provision for assisted living care. Check your loved one’s policy or call their insurance provider to see if they are entitled to this coverage.
- Aid & Attendance Benefit: This benefit is through the Veteran’s Administration. If your loved one was a veteran or is the surviving spouse of a veteran, they may be entitled to some financial assistance.
- MI Choices: This Michigan Medicaid waiver program helps seniors who need a higher level of care and have limited financial resources to pay for care.
Affordable Housing for Seniors
At Wellspring Lutheran Services, we understand that many seniors live on a fixed income that makes senior care difficult to finance. It is why we’ve worked hard to bring affordable housing options to several of our Michigan communities. For seniors who meet age and income limits, there is help available through the U.S. Department of Housing & Urban Development (HUD) and the Michigan State Housing & Urban Development Authority (MSHDA).
Less Traditional Options to Help Finance Assisted Living Care
Two additional resources that may help families close the gap in paying for care are:
- Short-term loans: Some banks offer a bridge-style home equity loan that provides short-term funding while a family is trying to sell the senior’s home or liquidate some of their assets to pay for care. This allows caregivers to move their senior loved one to an assisted living community before their home is sold.
- Life insurance settlement: Older adults with life insurance policies have the option of selling them to a third party for cash. While they won’t receive the full face value of the policy, they do receive more than the surrender value. That can help close the gap in financing senior care.
We hope these ideas help you put together a financial plan for a senior loved one’s care.
What options are you considering to help finance assisted living care?
Need help or have additional questions? Feel free to CONTACT US!