Before you place your relative, make sure you know the facility's certification status. About 11,000 facilities are certified for both Medicare and Medicaid, but some 1,100 homes are certified only for Medicare. If your relative needs continued nursing care, and Medicaid will at some point have to pay the bills, choose a facility that's certified for both. Most nursing homes couldn't operate without Medicaid money, but they nevertheless give Medicaid patients low priority, since reimbursement rates in most states are relatively low. Medicaid is funded jointly by the federal and state governments.
States pay the rest.
How states fix those rates can also determine which facility will accept your relative. To qualify for Medicaid, a patient must meet an income and asset test. The test varies from state to state. But in most states, if your income is less than the private-pay rate, you can be eligible for Medicaid. Medicaid pays the difference between your income and the Medicaid rates.