Medicaid and Nursing Home Eligibility in the USA

Updated 30 October 2026 · Educational resource

Medicaid is the primary public payer for long-term nursing home care in the United States for people who meet financial and functional eligibility rules. Unlike Medicare, which focuses on short-term skilled care, Medicaid can cover extended stays when a person needs ongoing nursing facility services and has limited income and assets.

Financial eligibility

Each state sets its own income and asset limits for nursing home Medicaid, within federal guidelines. Countable assets often include bank accounts, investments, and certain property, while a primary home may be exempt under specific conditions. States also apply look-back periods for asset transfers. Rules differ significantly by state, so families should contact their state Medicaid agency or a qualified elder-law attorney for current requirements.

Functional eligibility

Applicants must generally need a nursing-facility level of care as determined by a state assessment. This typically means the person requires assistance with multiple activities of daily living or has medical needs that cannot be safely managed at home or in a lower level of care.

Application processes, required documents, and processing times vary. Many states offer resources through Area Agencies on Aging or SHIP programs to help families navigate the process.

Disclaimer: Medicaid rules are state-specific and change over time. This page provides general information only. Verify current eligibility criteria with your state Medicaid agency.

← Back to Information Centre · About this site · Editorial policy