KFF Brief: A Closer Look at State Directed Payments for Nursing Home Services
KFF has released a brief examining how new limits on Medicaid state-directed payments under the 2025 reconciliation law could affect nursing home services.
Annual spending on state-directed payments for nursing home services is estimated at $3.7 billion, including $2.2 billion in federal spending. Of the 15 states with publicly available payments for nursing home services, 13 use average commercial rates as a benchmark. The brief examines how the new payment limits could affect nursing homes and Medicaid beneficiaries, although the extent of potential payment reductions remains unclear.
Read the brief.
Explore KFF's data on nursing homes.
Explore KFF’s research and data on older adults.
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