Michigan residents are paying significantly more for nursing home care than the national median, according to new data released Monday from the Cost of Care Survey conducted by CareScout.
A recent Cost of Care Survey from CareScout found the median annual price for a private room in a Michigan nursing home reached $143,628 last year, well above the national median of $129,575.
The price difference means Michigan families are paying more than 11% above the national average, and the annual cost is nearly double the state’s median household income.
The disparity becomes even larger when looking at semi-private rooms.
Across the U.S., the median annual cost for a shared nursing home room in 2025 was $114,975. In Michigan, that figure climbs to $135,050, creating a gap of more than 17% above the national median.
Aging population and staffing pressures
Industry leaders say the higher costs reflect a combination of demographic changes and workforce challenges.
Michigan’s population is aging faster than many other states. Roughly 1.9 million residents — nearly one in five — are now age 65 or older, increasing demand for long-term care services.
At the same time, nursing homes continue to grapple with staffing shortages and high turnover, trends that intensified during and after the COVID-19 pandemic. Increased regulatory scrutiny and competition for workers have also pushed facilities to raise wages.
You have a bit of a trifecta happening where all of these drivers are working in opposite directions,’ said Samir Shah, CEO of CareScout. ‘You need more care. You have less care. And the care that is there is asking for more money.
Costs vary widely across the state
The survey found substantial regional variation in nursing home costs.
In the Jackson area, the median annual cost for a private room is about $100,000, while facilities in Ann Arbor and Lansing can exceed $160,000 per year.
However, Shah cautioned that higher prices do not necessarily mean better care. Michigan’s nursing home sector includes highly rated facilities, but recent industry reports have also pointed to persistent issues including understaffing, neglect, and safety concerns in some homes.
Families often struggle to evaluate care options, Shah said, noting that many don’t know to ask about services such as specialist visits, transportation for residents, or wellness programs.
Medicaid carries much of the cost
Long-term care spending also has major implications for taxpayers.
Michigan nursing homes receive about $3 billion annually in Medicaid funding, according to state reports. The program covers care for low-income residents and for individuals who exhaust their personal savings while paying for long-term care.
As costs continue rising, advocates say expanding alternatives could ease pressure on the system. Options like home-based services, small “Green House” style homes, and Programs of All-Inclusive Care for the Elderly (PACE) are gaining attention.
With members of Generation X approaching retirement age, some experts expect demand for alternatives to traditional nursing homes to grow.
“This generation isn’t likely to accept the status quo,” said Stephanie Winslow, executive director of the PACE Association of Michigan. “They’re looking for better options.”
