The federal government will award up to $30 billion in Medicaid nursing home loan guarantees to hospitals and other institutions that are “in need of nursing home care,” a senior administration official told Engadge.
The $30-million loan guarantee would cover up to 1,200 nursing homes, the official said.
The federal government announced the nursing home loans on Tuesday, and it said they would go to nursing homes that are in need of care.
The Department of Health and Human Services (HHS) is also announcing a new program to help pay for the nursing homes.
Under the program, the Federal Emergency Management Agency (FEMA) will pay up to 30 percent of the total cost of a nursing home under the nursinghome loans.
The loan payments will be capped at a level that is equal to or lower than what the nursing facility is paying for the same type of care, according to the announcement.
Under the new program, nursing home facilities will have to cover the entire cost of their care in the event of a natural disaster, including the cost of emergency room care, rehabilitation, rehabilitation for nursing home residents, and medical care for nursing staff.
The government has previously said that the nursing facilities would have to pay for this care.