Criteria for Nursing Home Placement (2024)

Last updated: March 15, 2022

Table of Contents

What is “Nursing Home Level of Care” (NFLOC)?

How is NFLOC Determined?

Why It’s Important to Medicaid Eligibility

How Medicaid Determines NFLOC (the Functional Assessment Process)

When in the Application Process Is the Functional Assessment?

Who Pays for the Determination?

Is Redetermination of Functional Need Required?

What is “Nursing Home Level of Care” (NFLOC)?

A “nursing home level of care” (NHLOC), also called a nursing facility level of care (NFLOC), is a measure of care needs that must be met for Medicaid nursing home admissions. This level of care is also frequently used as a criteria for one to receive long-term care services and supports from a home and community based services (HCBS) Medicaid waiver. Please note; there is also a care need criteria for personal care assistance or attendant care through a state’s regular Medicaid program. This program is commonly called Aged, Blind and Disabled Medicaid for persons who fall into this category. However, the care need requirement is often lower than a nursing home level of care.

The term “nursing home level of care” is not easily definable, as there is no formal federal definition. Instead, each state and the District of Columbia has the task of defining what this means in their own state. Although the rules are not consistent from one state to the next, the following four areas are commonly considered when a state determines a person’s level of care need. These are generalizations; it is unlikely all states consider all four areas.

1) Physical Functional Ability

One’s ability (or inability) to complete day to day activities, called activities of daily living (ADLs), are commonly considered. These are basic activities that a person must complete on a daily basis to take care of oneself. These activities include bathing and personal hygiene, dressing and undressing oneself, using the toilet and cleaning up after oneself, mobility / transferring (walking from one room to another, getting out of bed and into a chair), and eating. Take an online ADL assessment here.

Instrumental activities of daily living (IADLs) may also be taken into account. These activities do not necessarily need to be done on a daily basis, but are necessary to live independently. Examples include shopping for groceries and other essentials, meal preparation, housecleaning, laundry, medication management, and paying the bills.

2) Health Issues / Medical Needs
One’s health, or medical needs, are also frequently considered when determining if a senior meets a nursing home level of care. Examples includes needing assistance with injections, catheter care, and intravenous (put into a vein) medications.

3) Cognitive Impairment
Cognitive (mental) functioning may also be considered when determining if a senior meets a NFLOC. This area is particularly relevant for persons who have Alzheimer’s disease or a related dementia, such as dementia from Parkinson’s disease or Lewy body dementia. Seniors with impaired judgement may not be able to make appropriate and / or safe decisions, putting themselves in danger if living independently without supervision and assistance.

4) Behavioral Problems
Behavioral issues, also commonly seen in persons with dementia, particularly in the mid-late stage of the disease, may also be taken into account when determining if an individual meets a nursing home level of care. Examples of such behaviors include frequent wandering from the home and becoming lost, impulsiveness, and aggressiveness (physical, sexual, verbal).

Learn more about Medicaid coverage of nursing home care.

How is NFLOC Determined?

States use functional assessment tools to determine if a person meets a nursing facility level of care.

These long term care assessments generally consist of a compiled list of questions. They are usually on paper, but sometimes are in a database. The most common functional consideration is one’s ability / inability to perform one’s activities of daily living (bathing, dressing, grooming, etc.). The questions may ask how often (how many times per day / how many days per week), for how long (how many minutes), and what type of assistance (verbal cues, assistive devices / adaptive equipment, hands on assistance, 100% dependent) a person requires.

Questions regarding one’s health, mental functioning, behavior, and family support may also be included. With these questionnaires, a state may set a minimum score (a threshold number) and if the candidate reaches that score, it indicates they meet the LOC need. For instance, the necessity of verbal ques to perform an activity might earn 1 point, the physical need for assistance might earn 2 points, troubling behavior (i.e., wandering or aggressiveness) might earn 3 points, and the need for constant supervision to ensure safety might also earn 3 points. Other states may set a minimum number of ADLs in which a senior requires assistance, and if they cannot perform the minimum number of ADLs set forth, the nursing home level of care requirement is met. In some states, needing assistance with 2 ADLs may be sufficient to be labeled as such, while other states may require assistance with 4 ADLs. Still, other states set forth specific definitions and rules and the person completing the LOC assessment uses them as a guideline. Regardless of how the state makes its determination, most states look at a combination of factors.

Some states may also require a physician diagnosis of specific medical conditions or a statement that the Medicaid applicant requires the level of care provided in a nursing home.

Being assessed as requiring Nursing Facility Level of Care in one state does not mean one will automatically receive the same assessment in any other state.

As with the definition of NFLOC, the federal government does not require states to use a specific long term care assessment. This means that a large number of functional assessment tools exist nationwide. In fact, according to MACPAC, more than 120 tools are used, some of which are state-developed. Therefore, there is no consistency between states as to how this determination is made, and because of this, a senior may meet a nursing home level of care in one state, but not in another state.

Why It’s Important to Medicaid Eligibility

One’s level of care need is crucial to being eligible for nursing home Medicaid. The program will not pay for nursing home care if an applicant does not require a level of care that is consistent to that which is provided in skilled nursing facilities.

This is significant in that many families are in the position that their loved one requires more care than they can provide at home, but they do not require a high enough level of care for nursing home admittance. This in-between level of care is typically provided in assisted living. However, assisted living is only covered by Medicaid in a very limited capacity.

Many Medicaid waivers also require a nursing home level of care to receive long-term services and supports in the home and community. This may include home care, adult day care, and adult foster care.

Again, Medicaid determination of a nursing home level of care in one state does not mean that the same individual will meet this level of care in another state. For instance, say an elderly individual is currently receiving long-term care Medicaid in California, but wishes to relocate to Florida. It cannot be assumed that the senior will automatically meet the NFLOC in Florida.

Medicaid also has income and asset requirements. State specific eligibility information can be found here.

How Medicaid Determines NFLOC (the Functional Assessment Process)

Like the criteria to meet a nursing home level of care, the functional assessment process for long-term care Medicaid eligibility differs based on the state. It may also differ based on the Medicaid program for which one is applying. While the focus here is on NFLOC, it is important to mention that regardless of the Medicaid program providing long-term services and supports, be it nursing home Medicaid, home and community based services via a Medicaid waiver, or personal care assistance via the regular state Medicaid plan, a functional assessment is a vital process in determining Medicaid eligibility.

Some states require a Medicaid applicant to fill out and submit a functional assessment intake form, essentially an initial screening, prior to undergoing a long term care assessment. This functional screening often asks about one’s current living situation (i.e., alone, with spouse / others, an adult foster care home, nursing home, etc.) and the areas in which one has issues and concerns. For example, is the individual unable to perform activities of daily living, such as bathing, mobility, and eating, without assistance? Is the individual having behavioral or cognitive issues? Are there signs pointing to a potential mental illness?

Consent must be given by the Medicaid applicant, or their legal guardian, for a functional needs assessment to be completed. A release of information form may also be necessary, as the collection of other information, such as medical records, may be part of the functional assessment process. Information obtained via the functional assessment is considered confidential.

In most cases, a face-to-face functional needs assessment is required. This may occur in one’s home, a hospital, an assisted living residence, a nursing home, or in another setting. One’s primary residence is the best setting in which to conduct the functional assessment. This enables the screener to observe the Medicaid applicant in their natural living environment.

In addition to verbal questions directed to the Medicaid applicant during the functional needs assessment, nonverbal cues, such as facial expressions and body language, may be taken into account. The individual might also be observed performing day to day activities in their home. Furthermore, persons who are familiar with the Medicaid applicant may be asked to provide additional information. Often, it is the spouse, an adult child, or a healthcare provider that provides supporting evidence of functional need.

It is difficult to say how long the actual long term care assessment takes, given different functional tools are used based on the state and Medicaid program for which one is applying. It is thought that the administration of the assessment should take no longer than a few hours.

Not only do functional needs assessments help to determine if a program applicant meets the program’s functional eligibility requirement, but they sometimes also serve as a tool to create a care plan (service plan) for the Medicaid applicant. (Some states use a separate tool, a more extensive needs assessment, for this purpose). With the creation of a service plan, the specific types of care and the amount of care required is established. For instance, a service plan for a senior with early stage Parkinson’s disease dementia might indicate 20 hours of personal care assistance and homemaker services is required, as well as home modifications to continue to safely live at home.

When in the Application Process Is the Functional Assessment?

A long term care assessment to determine a NFLOC is key in determining if a Medicaid applicant meets the functional criteria for long term care Medicaid. This part of the application process is as crucial as determining financial eligibility. Without a functional need, a Medicaid applicant will be denied long term care, and without a financial need, a Medicaid applicant will also be denied coverage. Therefore, these two components of eligibility are equally important and are considered early in the application process.

While the average length of time it takes for a functional needs assessment to be scheduled is unknown, it is thought that the process proceeds rather quickly. On average, it generally takes 45-90 days from the date of application to approve or deny one’s Medicaid application, and the functional assessment must have been done prior to a Medicaid determination.

Who Pays for the Determination?

Since the functional assessment to determine level of care need is part of the Medicaid application process, Medicaid pays for the assessment.

Is Redetermination of Functional Need Required?

Yes, a redetermination of functional need is required. Once a nursing home level of care need is established via the initial functional needs assessment, subsequent functional needs assessments are required at a minimum of every 12-months. This is to ensure the program participant continues to meet the functional need.

Criteria for Nursing Home Placement (2024)


What is the best predictor of nursing home placement? ›

Among the strongest predictors of nursing home admission were 3 or more activities of daily living dependencies (summary odds ratio [OR] = 3.25; 95% confidence interval [CI], 2.56–4.09), cognitive impairment (OR = 2.54; CI, 1.44–4.51), and prior nursing home use (OR = 3.47; CI, 1.89–6.37).

Does Medicare pay for nursing home in Arkansas? ›

In Arkansas, the Medicaid state plan will cover the cost of living in a nursing home facility, as well as limited personal care in the home and community.

What are the 3 most common complaints about nursing homes? ›

What Are the Three Most Common Complaints About Nursing Homes?
  • Slow Response Times. By far, the most common complaint in many nursing homes is that staff members are slow to respond to the needs of residents. ...
  • Poor Quality Food. ...
  • Social Isolation. ...
  • When Complaints Turn into a Dangerous Situation.
Dec 29, 2021

What are the most common reasons why elderly are placed in a nursing home? ›

Some type of disability when it comes to performing the activities of daily living (ADLs) is the most common reason that older people live in nursing homes. Not surprisingly, people living in nursing homes generally have more disability than people living at home.

What is the maximum income to qualify for Medicaid in Arkansas? ›

Who Is Eligible for Medicaid in Arkansas? There are a few income and asset requirements for Arkansas residents who apply for Medicaid. For starters, the annual income levels for an individual can't exceed $16,971, and for a family of four, the maximum allowable income a year is $34,846.

How much does it cost to put someone in a nursing home in Arkansas? ›

10 least expensive states for nursing home costs
StateSemi-Private RoomPrivate Room
6 more rows
Mar 30, 2021

What is the average cost of a nursing home in Arkansas? ›

The Cost of Nursing Home Care in Arkansas

At $5,931 per month for semiprivate accommodations, Arkansas is among the most affordable states in the country for nursing home care. Nationwide, facilities charge nearly $2,000 more, with an average cost of $7,756.

What is the biggest problem in nursing homes? ›

Staffing issues.

With some facilities facing serious staffing shortages and high workloads among existing staff, patients in these nursing homes often feel as if their needs are not being met.

How often should nursing home residents be bathed? ›

1. Seniors don't have to bathe every day. Even though most Americans are used to showering every single day, it's not a strict requirement for good health. At a minimum, bathing once or twice a week helps most seniors avoid skin breakdown and infections.

What is the leading cause of death in nursing homes? ›

Pneumonia and related lower respiratory tract infections are the leading cause of death among nursing home residents. This is also a big reason behind transfers to the hospital.

What questions should I ask when looking for a nursing home? ›

Checklist: Questions to ask when choosing a nursing home
  • Is the nursing home Medicaid or Medicare certified?
  • What kind of care and services does the home provide? ...
  • Does the nursing home have a special wing or unit for memory care, short-term rehabilitation and/or ventilator care?
  • How does the home bill its residents?
Sep 3, 2021

What are good questions to ask a skilled nursing facility? ›

5 Questions to Ask A Skilled Nursing Facility
  • What are your inspection ratings or what star rating is your skilled nursing facility? ...
  • What kind of activities are available for my loved one? ...
  • Is there an RN available at all times in your skilled nursing facility?

Which finding will the nurse document as a normal aging process? ›

Which patient's finding will the nurse document as a normal aging process? Loss of skin elasticity is a normal aging process because of loss of elastic tissue under the skin. Therefore, the nurse will document patient C's finding as a normal aging process.

What questions should family members ask during care plan meetings? ›

What Questions Should Family Members Ask During Care Plan Meetings?
  • Has the status of my loved one's health or behavior changed at all since the last meeting? ...
  • Have there been any additions or discontinuations to the list of medications my loved one is taking?
  • Has my loved one seen any doctors since our last meeting?
Dec 23, 2019

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