Michigan's nursing home rates higher than nationwide

July 8, 2010
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According to a survey conducted by Genworth Financial Inc., a global insurance firm that sells long-term care coverage, the cost for adult day health care and assisted living rose 12 percent nationwide over the past year. The cost for semi-private and private rooms in nursing homes across the country went up by about 1 percent.

In its 2010 Cost of Care Survey, the company found the national median annual rate for adult day health care was $15,600, and $38,220 for a one-bedroom apartment in an assisted living facility. Both rates were increases of 12 percent from 2009.

As for nursing homes, the Genworth survey showed that the 2010 national median annual rate for a semi-private room was $67,525, and $75,190 a year for a private room. Both rates were up by roughly 1 percent from 2009.

The median annual rates in Michigan were higher than the national figures for adult day care ($16,640), a semi-private room in a nursing home ($75,555) and a private room in a nursing home ($82,125). The yearly cost for a one-bedroom apartment in an assisted living facility was less in Michigan ($31,200) than the median figure for the nation.

Genworth looked at costs in 14 Michigan markets for its latest survey, up from eight markets examined last year. The survey found that the median annual costs in the Grand Rapids-Wyoming market were higher than the statewide figures for adult day health care and semi-private and private rooms in a nursing home, but lower for assisted living facilities.

Here is how the Grand-Rapids-Wyoming market compared to the rest of the state.

  • Adult day health care rates: Grand Rapids-Wyoming had the state's fourth highest median charge of $22,880 a year. Yearly rates in Jackson, Monroe and Muskegon-Norton Shores were higher. The lowest rate was in Lansing-East Lansing at $13,390.

  • Semi-private room in a nursing home: Grand Rapids-Wyoming had the state's sixth highest median charge of $76,650 a year. Yearly rates in Ann Arbor, Kalamazoo-Portage, Flint, Lansing-East Lansing and Muskegon-Norton Shores were higher. The lowest rate was in Niles-Benton Harbor at $65,153.

  • Private room in a nursing home: Grand Rapids-Wyoming had the third highest median charge of $91,615 a year. Yearly rates in Ann Arbor and Kalamazoo-Portage were higher. The lowest rate was in Niles-Benton-Harbor at $69,489.

  • Assisted living facility: Grand Rapids-Wyoming had the  third lowest median charge of $27,000 a year. Only Bay City and Saginaw were lower. The highest rate was in Kalamazoo-Portage at $47,055.

The survey's 2010 results revealed changes in the local annual median rates. The local 2010 cost for a year of adult day care jumped by 46.7 percent from 2009, and the annual charge for a private nursing home room rose by 5.2 percent from last year. At the same time, the annual local cost for a one-bedroom apartment in an assisted living facility fell by 19.6 percent from the 2009 survey, and the charge for a semi-private room in a nursing home dropped by 2.6 percent.

This year's survey was the seventh for Genworth and the first time the company included the city of Wyoming in the rates for Grand Rapids. Genworth reported it surveyed nearly 13,000 providers nationwide. The results were released in April.

The cost of long-term care: median annual rates 2010

Type of Care

Grand Rapids/Wyoming

Holland/Grand Haven

Muskegon/Norton Shores

State of Michigan

Adult Day Health Care

$22,880

$18,590

$24,752

$16,640

Assisted Living Facility (One bedroom)

$27,000

$34,887

$28,200

$31,200

Nursing Home (Semi-private room)

$76,650

$73,548

$77,745

$75,555

Nursing Home (Private room)

$91,615

$82,125

$86,505

$82,125

Note: Adult day health care annual rates are based on the price for five days a week multiplied by 52 weeks. Assisted living facility rates are based on monthly rates multiplied by 12 months. Nursing home rates are based on daily rates multiplied by 365 days.

Source: Genworth Financial 2010 Cost of Care Survey, April 2010

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