One of the biggest myths about Medicare is that it pays for long-term care. It doesn't. Medicare covers only limited periods of inpatient care in a skilled nursing facility, and skilled nursing care and therapy at home, under strict guidelines. Still, Medicare's coverage of these services can be vital if the person you're caring for has just been hospitalized or has otherwise suffered a serious medical event. Medicare can pay for costly short-term, intensive rehabilitation, which in turn can give you a chance to arrange for longer-term care if it's needed.

Who's eligible for Medicare coverage of nursing-facility and home care?

Medicare coverage of inpatient care in a skilled nursing facility is a standard part of Medicare Part A. Someone already enrolled in Part A doesn't have to do any special paperwork to receive nursing-facility coverage.

Skilled care at home can be covered by either Medicare Part A or Medicare Part B, under slightly different rules. Persons enrolled in either Part A or Part B can receive coverage for skilled home care without any additional Medicare enrollment.