Medicaid pays for assisted living facilities in some states, according to Nolo. Federal law mandates that it pay for skilled nursing facilities for recipients and home health care for those who qualify for nursing home care who choose to remain at home.
In states where Medicaid pays for assisted living, the state does not require the facility to accept the payment. To qualify for payments, each facility undergoes periodic inspections. Facilities that accept Medicaid payments must have a state license to operate, reports Nolo. Because states differ in their eligibility requirements, recipients who move across state lines sometimes lose their coverage.