The Cost Savings of Home Care
In addition to being a preferable option for the vast majority of long term care patients, home care is a much more cost effective means of delivering care when compared to nursing homes.
It costs the state of Michigan more than four times as much to keep a person in a nursing home as it does to provide care for them in their own homes.
If all the current Home Help consumers who are eligible for a nursing home were put into a facility, it would cost the state $879 million more a year.
In the 2005-06 fiscal year, the Home Help program produced about $33 million in anticipated expenses that were never needed.
Source: Department of Community Health
Report Finds Massive Savings In Home Care
A recent study by the Lansing-based Anderson Economic Group (AEG) has found that Michigan can substantially reduce its Medicaid costs by investing more in home care. The report shows that the recent wage increases in the Home Help program could save Michigan over $276 million by 2012.
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