Does Medigap Cover Nursing Home? 
Medigap plans C , D , F , G , M , and N will pay skilled nursing facility coinsurance , but only if Medicare will cover the stay . Medigap plans K and L pay a percentage of the coinsurance if Medicare will cover the stay . Medicare does cover some inpatient skilled nursing care , but only if 1 . its necessary to treat an improving medical condition AND 2 . services are provided at a Medicare approved facility AND 3 . the person spent at least 3 days as an admitted inpatient at a hospital . -LRB- Note : many Medicare beneficiaries that go to the hospital are coded for an observational stay , due to stricter governance by CMS over higher cost reimbursements for inpatient admissions . If a patient is coded for an observational stay , and not an inpatient admittance for at least 3 days , they are not eligible for the skilled nursing benefit . Over 1 million Medicare beneficiaries lost SNF benefit last year due to observation coding -RRB- . Medicare skilled nursing benefit : Medicare pays up to 100 days of skilled nursing facility -LRB- SNF -RRB- care if the qualifications are all met , days 1-20 in full , days 21-100 subject to $ 161 per day patient co-insurance -LRB- 2016 -RRB- . If a doctor places an individual in a hospital or skilled nursing facility when the kind of care the individual needs could be provided elsewhere -LRB- i.e. at home or a non-skilled care facility -RRB- , the individuals SNF stay will not be considered reasonable and necessary , and Medicare will not pay for it . If an individual stays in a hospital or skilled nursing facility longer than necessary , Medicare payments will end when inpatient care is no longer reasonable or necessary . Medicare also does not cover the stay if the patient needs only custodial care , i.e. assistance with activities of daily living . 