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Michigan Nursing Home Costs Climb Above National Average Again

By: Charlotte Burke • March 3, 2026 • Lansing, MI
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photo courtesy of CareScout

(LANSING) - Michigan families are paying more than the national average for nursing home care, according to newly released data.

The 2025 Cost of Care Survey by CareScout shows the median annual cost of a private nursing home room in Michigan reached $143,628. Nationally, the median stands at $129,575.

Semi-private rooms show an even larger gap. Michigan's median cost is $135,050 compared to $114,975 nationwide.

Bridge Michigan reports the higher costs are driven in part by the state's aging population and ongoing staffing shortages in long-term care facilities. Nearly 20% of Michigan residents are 65 or older, increasing demand for services. At the same time, rising wages and workforce turnover have pushed up operating costs.

CareScout CEO Samir Shah said the imbalance between demand and available caregivers is fueling higher prices.

Costs also vary widely by region. Annual private room rates range from about $100,000 in the Jackson area to more than $160,000 in the Ann Arbor and Lansing regions.

Much of the expense is covered by Medicaid. Michigan nursing homes receive an estimated $3 billion annually in Medicaid funding for lower-income residents and those who have exhausted their savings.

Advocates continue to push for alternatives such as home-based care, Green House homes and Programs of All-Inclusive Care for the Elderly, known as PACE, as the state's senior population continues to grow.