Consumer-Focused, Cost Effective Long Term Care for an Age-Friendly Michigan

Ryan, E., Dale, E., Fox-Grage, W., Ari, H., Farmer, A., Cooper, L. (2012, March). Consumer-Focused, Cost Effective Long Term Care for an Age-Friendly Michigan Lansing, MI: AARP.

Abstract

This white paper is intended to provide information to Michigan policymakers as you make policy and funding decisions regarding the design and delivery of long term care services in Michigan, and more broadly, in your efforts to create a more vibrant, age-friendly Michigan. The data, research and AARP’s policy recommendations in this paper can be summarized as follows:

  • The overwhelming majority of Michigan voters want to avoid ever living in a nursing home. If or when they need long term care services, they prefer to stay at home, or in a home-like, community setting.
  • Nursing homes are expensive, and becoming more expensive. Total Medicaid expenditures for nursing home care in Michigan grew 4% in FY 2009 and 8.2% in FY 2010. In 2011, the median annual rate for a semi-private room in a nursing home in Michigan was $80,300.
  • An array of lower cost alternatives to nursing home care exists for people who need long term care services, and other states make those alternatives more available for their residents than Michigan does. Thirty-five states spend a smaller proportion of their long term care dollars on nursing homes than we do in Michigan.
  • The State of Michigan can save money by rebalancing our long term care system in the direction that Michigan residents overwhelmingly favor. A national analysis published in 2011 found that the use of home and community based services (HCBS) produced an average annual public expenditure saving of $57,338 per participant. On average, Medicaid dollars can support nearly three older people and adults with physical disabilities in HCBS for every one person in a nursing home.
  • Family caregivers are the backbone of Michigan’s long term care system. Providing better and more meaningful supports for family caregivers is essential to the well-being of Michigan’s long term care system, our economy, our communities and our families.
  • It's time to recognize new opportunities for an age-friendly Michigan.

Obtain the Full Version

Download the PDF

Previous publicationPrevious publication Next publication Next publication