What Medicare covers first
Medicare Part A covers care in a skilled nursing facility for up to 100 days per benefit period, after a qualifying inpatient hospital stay, if you need daily skilled care. In 2026, days 1–20 have no coinsurance, and days 21–100 cost $217 a day. Medicare doesn't pay for long-term custodial care, the everyday help most nursing home residents need.
How NC Medicaid decides
- Medical need: a special NC Medicaid review team decides whether you need nursing facility care.
- Financial eligibility: the Department of Social Services in your county reviews your income and resources. NC's chart MA-2252 sets the resource limit for one person.
- Your home: it isn't counted while you, your spouse or a dependent relative lives there, or while you intend to return (MA-2230). A federal home equity limit applies to long-term care (MA-2242).
- Transfers: the county looks back 60 months for gifts or sales below market value (MA-2240).
How your income is used
Many states cap income for nursing home Medicaid. North Carolina doesn't. Under NCDHHS manual MA-2270, the county compares your income with the nursing home's private rate. If your income plus predictable medical expenses don't cover that rate, you can qualify. Once you qualify:
- You keep a personal needs allowance. NCDHHS sets this monthly amount for clothing and personal items.
- Some deductions come off. These can include an allowance for a spouse or dependents at home and unmet medical expenses, such as health insurance premiums.
- The rest is your patient monthly liability. You pay it to the nursing home, and Medicaid pays the remainder up to its rate.
After you qualify
- Medicare stays primary. You keep Medicare for hospital care, doctors and Part D, and you get Extra Help automatically. Medicare plan changes are allowed more often while you live in a nursing home (42 CFR 422.62(a)(4)).
- NC Medicaid Direct. People with Medicare and Medicaid, and long-stay nursing home residents, are outside the managed care health plans (G.S. 108D-40).
- Estate recovery. NC Medicaid can claim nursing facility costs from the estate of a member 55 or older, or of any age if permanently institutionalized (G.S. 108A-70.5).
If you'd rather stay home, see CAP/DA and PACE in NC Medicaid and Medicare. To review Medicare coverage for a parent in a nursing home, you can request a call from a licensed insurance agent.
Related questions
What is the Medicaid look-back period in NC?
How gifts and transfers are treated.
Does NC Medicaid take your house after death?
Estate recovery, deferrals and waivers.
What is the CAP/DA waiver?
Nursing-home-level care at home.
Sources
- NC Medicaid — Nursing Facilities
- NCDHHS — MA-2270, Long Term Care Need and Budgeting (revised 06/16/2026)
- NCDHHS — MA-2230, Financial Resources (revised 06/30/2026)
- NCDHHS — MA-2252, Non-MAGI Medicaid income and reserve limits
- NCDHHS — MA-2240, Transfer of Assets
- N.C. General Statutes § 108A-70.5, Medicaid Estate Recovery Plan
- Medicare.gov — Skilled nursing facility care
- eCFR — 42 CFR 422.62, MA election periods
More questions in this guide
- Are people with Medicare and Medicaid in NC Medicaid managed care?
- Can I have NC Medicaid and Medicare at the same time?
- Did NC Medicaid expansion change anything for people on Medicare?
- Does NC Medicaid take your house after you die?
- Medicare vs. Medicaid in North Carolina
- What is a dual eligible special needs plan in North Carolina?
- What is Special Assistance in North Carolina?
- What is the CAP/DA waiver in North Carolina?
- What is the Medicaid look-back period in North Carolina?
Part of the guide: NC Medicaid and Medicare together · All questions
Frequently asked questions
Do I need a Miller trust for nursing home Medicaid in NC?
No. North Carolina doesn't use an income cap for nursing home Medicaid, so a qualified income trust isn't needed. If your income is less than the nursing home's private rate plus your medical expenses, Medicaid can pay the difference (MA-2270).
Will I lose my house if I go into a nursing home?
Not to qualify, in many cases. The county doesn't count your home while your spouse or a dependent relative lives there or while you intend to return (MA-2230), though a home equity limit applies. After death, an estate recovery claim is possible.
Does Medicare pay anything once I'm on Medicaid in a nursing home?
Yes. Medicare still pays first for Medicare-covered care, such as a skilled nursing stay after a qualifying hospital stay, doctor visits and Part D drugs. NC Medicaid says that when a person has both, Medicare is billed first.
Medicare in your North Carolina county
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