... in states where Medicaid reimburses nursing homes with average cost prospective payments.
What does 'reimburse' mean in this sentence?
Thanks for any help.
As I understand it, to reimburse is to provide funds after they've been paid out.
In the case you quote, the nursing homes provide and pay for the care of their patients.
Medicaid then gives money to the homes to pay for that care.
In a more general usage, you can be reimbursed for expenses you have incurred as part of your employment - things like train fares and hotel bills which you pay for, but which you afterwards claim back.