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Institutional Special Needs Plans (SNPs) are specifically designed to serve individuals who reside in institutional settings, which primarily include nursing homes. This type of plan caters to the unique healthcare needs of patients who may require a higher level of medical care and support due to their living situation. Individuals in nursing homes often have complex medical conditions that necessitate a tailored approach to their health management, addressing both chronic and acute health issues, as well as ensuring access to various healthcare services.

While there may be other options that provide care to people in different environments, such as those living at home, hospice care facilities, or assisted living centers, they do not fall under the specialized focus of Institutional SNPs. Instead, these plans are explicitly structured to effectively meet the healthcare needs of residents in nursing homes, ensuring they receive the appropriate supervision, treatment, and coordination of care essential in such settings.