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What Does Nursing Facility Level of Care Mean for Medicaid?

“Nursing-facility level of care” is the clinical/functional threshold a state uses to determine whether someone qualifies for Medicaid nursing-facility services.

It is not one national checklist with one universal score. States define the criteria and assessment process.

What the review is trying to answer

The state is asking whether the person’s needs rise to the level that qualifies for the nursing-facility benefit under that state’s Medicaid rules.

The assessment may consider:

  • bathing, dressing, toileting, eating, and mobility;
  • transfers;
  • nursing treatments;
  • cognitive impairment;
  • behavioral or supervision needs;
  • medication management;
  • medical conditions;
  • rehabilitation needs; and
  • whether the person can be safely supported in another setting.

Which items matter and how they are scored varies by state.

Ask who performs the assessment

Depending on the state, the reviewer may be:

  • state Medicaid staff;
  • a contracted assessment organization;
  • a local agency;
  • a managed-care organization;
  • a clinician or interdisciplinary assessor.

Ask for the organization’s name and contact information.

Ask what evidence is used

Useful records may include:

  • hospital discharge information;
  • physician/clinician notes;
  • nursing notes;
  • therapy evaluations;
  • medication/treatment information;
  • ADL assistance level;
  • cognitive/safety documentation; and
  • recent changes in condition.

Do not exaggerate. Describe the person’s actual needs.

Distinguish current need from diagnosis

A diagnosis alone may not establish the state’s level-of-care standard.

Two people with the same diagnosis can need very different amounts of daily assistance.

Ask which functional or clinical needs drive the determination.

If the decision is unfavorable

Read the written notice.

Ask:

  • what criterion was not met;
  • what evidence was considered;
  • whether an assessment can be corrected;
  • whether a fair hearing/appeal is available; and
  • the deadline.

Do not use a deadline from another state.

Level-of-care worksheet

State/program: ____________________

Assessment agency: ____________________

Assessment date: ____________________

ADL help: ____________________

Nursing needs: ____________________

Cognitive/safety needs: ____________________

Reviewer decision: ____________________

Criterion not met, if denied: ____________________

Appeal deadline: ____________________

Frequently asked questions

Does needing assisted living mean someone meets nursing-facility level of care?

Not necessarily.

Does a doctor’s statement guarantee approval?

No. It can be evidence, but the state’s assessment and criteria control.

Is level-of-care approval permanent?

States may reassess continued eligibility or service need.

The practical goal

Ask for the actual state criteria, actual assessment, and actual written decision.

“Nursing-home level of care” should become a documented eligibility determination—not a vague phrase.

Related NHP guides

Primary sources checked

*Editorial/source review: October 15, 2026. General education only. Medicaid eligibility, level-of-care criteria, document requirements, deadlines, and appeal rights vary by state and must be confirmed with the responsible Medicaid agency or qualified adviser.*

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