Nursing Homes Costs

The average daily cost of nursing homes in Michigan is $272.

Daily costs range from $187 to $363 depending on location and other factors. Seniors who live in nursing homes in Michigan will find there are several ways in which to pay for such care. Long term insurance is one option. However, most policies do not pay the full daily cost and there may be time restrictions and maximum benefit amounts. Some seniors self-pay by selling their assets such as a home or business, until they have no money left. (Not our client’s!) Still, other seniors rely on Medicaid to pay for their stay in a nursing home. Medicaid is a federal program that is need-based and is the government’s answer to paying for skilled nursing care. At The Law Offices of David L. Carrier, our goal is to legally, ethically, and morally qualify you for Medicaid; to preserve as much of your life savings for you, so that your choices matter.

We get questions from families about how much money the at-home spouse can keep, the amount the nursing home spouse can keep (if any) and other such important questions when applying for Medicaid.

Here are some 2016 Medicaid numbers:

Monthly Maintenance Needs Allowance: $1,991.25 – $2,981

Applies when: One spouse lives in the nursing home and the other lives outside a nursing home

Definition: Maximum income each month that the spouse at home may keep. If both spouses combined income is lower than this amount, then the spouse at home keeps all of the income (and it may be possible to expand the resource allowance so the spouse at home can keep more than $119,220 of the total assets).

Minimum Community Spouse Resource Allowance: $23,844

Applies when: One spouse lives in the nursing home and the other lives outside a nursing home
Definition: Minimum amount of assets that a spouse at home may keep. If a couple’s combined total assets are below this amount, then the spouse at home keeps all of the assets.

Maximum Community Spouse Resource Allowance: $119,220

Applies when: One spouse lives in the nursing home and the other lives outside a nursing home
Definition: Maximum amount of assets that the spouse at home may keep in most situations. The spouse at home may keep the lesser of ½ of the total assets or $119,220. This can be higher using a formula from the state if the couple’s combined income is less than $2,981 per month.

Monthly Personal Needs Allowance: $60

Applies when: A person is receiving Medicaid benefits in the nursing home
Definition: Monthly amount that a Medicaid recipient may keep for personal items which Medicaid does not cover (haircuts, snacks, etc.). Thirty dollars ($30) more may be available for veterans.

Divestment Penalty Divisor: $8282

Applies when: A potential Medicaid recipient transfers assets
Definition: This figure, based on the statewide average of monthly nursing home costs, is used to determine the length of time an individual or couple is ineligible for Medicaid benefits because of transfers they have made.

Every divestment, no matter how small, triggers a penalty and denial of benefits.

Resource Allowance for an Individual: $2,000

Applies when: A single person living in the nursing home applies for Medicaid benefits
Definition: Maximum amount of assets a single person may own and still qualify for Medicaid benefits.

Resource Allowance for a Couple: $3,000
(Both Husband and Wife in a Nursing Home) 

Applies only when BOTH spouses reside in a nursing home
Definition: Maximum amount of assets a couple may own and still qualify for Medicaid benefits. If one spouse has received benefits for more than one year and then the other spouse moves to a nursing home and makes application, then a different rule may apply.