Provides rationale and context for long term care placement criteria, distinguishing between custodial (non-skilled) care and skilled services that require licensed clinical personnel. Nursing home care includes long-term residential care and short-term post-acute/rehabilitative care; skilled services are those needing the skills of professionals such as RNs, PTs, OTs, and others.
Explains that custodial care addresses assistance with activities of daily living (ADLs) and supervision for safety or behavior management and is not based solely on medical diagnosis. Room and board costs for long-term residents are generally paid by Medicaid, long term care insurance, or out-of-pocket, whereas short-stay post-acute rehabilitation is generally paid through the SNF skilled benefit, most often under Medicare.
Notes federal and regulatory context: the Omnibus Budget Reconciliation Act (OBRA) requires a comprehensive assessment at admission (a comprehensive geriatric assessment evaluating functional, physical, cognitive, emotional, and psychosocial status) to develop a treatment plan and determine level of care. Ongoing reassessment is required to ensure the appropriate level of care is maintained and to communicate status changes with facility staff, family, and the Health Plan Case Manager.
Coding and administrative guidance are included for informational purposes only: referenced CPT/HCPCS codes (e.g., 90960–90962, 94004) are informational; inclusion or exclusion does not guarantee coverage and providers should reference current professional coding guidance prior to claims submission. The policy has undergone multiple annual reviews and minor coding/description edits over time.