Medicaid was created in 1965 under Title XIX of the Social Security Act. The federal government shares costs with states to give health care services to the poor. To receive long term care benefits, residents are required virtually to exhaust their financial income to $1,500 per month for an individual and $3,000 per month for a couple or less; financial resources of $2,000 for an individual and $3,000 for a couple or less; and have a long term need for 24-hour care. The facility admissions or social work staff can guide you through the Medicaid application process.

Residents in the medically needy category can be covered by Medicaid if their medical expenses bring net income to below standard eligibility limits. With this in mind, Medicaid does pay for long term institutional care.

Medicare is a health insurance program, primarily for people aged sixty-five and older, established in 1965 as Title XVII of the Social Security Act. It covers people entitled to Social Security benefits, others under age sixty-five who are disabled (under certain definitions), and some people with end-stage kidney disease.

Medicare entitlements are limited to payment for conditions where patients are under a physician's care and in need of skilled nursing services. Prior to admission into the nursing facility, the person must spend at least three nights in a hospital setting, as well as have a diagnosis that requires "skilled care." Payment for services is denied when the nature of nursing care required is no longer skilled. "Skilled services" include the need for one or more of the following therapies: physical, occupational, speech, or respiratory.

If you are assisting someone entering a nursing facility, there are facts, figures, and papers you will need to begin the process.

	A health insurance policy will describe any long term care covered, as well as restrictions. Long term care insurance policies are often sold separately from the routine health insurance policies, so check for these.
	Bank statements and other financial documents will reveal whether the resident has the ability to finance nursing care.
	If you will be applying for assistance, you will be asked to document real estate property, pension and retirement income, burial plots and insurance, and other assets which will determine whether the resident qualifies for federal and state aid.