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Is it true that a nursing home can lose Medicare or Medicaid funding by banning a residents' family members or trying to alienate a resident from his or her family? Who knows the law in the State of Kentucky, Ohio & Indiana? But then I have read that nursing homes can ban anyone they want even if you are a family member. Can you go outside the nursing home to file a complaint?

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Unlikely that they would lose license if they are protecting a senior in their care.
. If a family member is disruptive to the life of a Senior with their visits then they can and SHOULD be banned from visiting. You can ask for an ombudsman to intervene and negotiate visits and visit contracts with the Nursing Home. Some places, such as ALF are not licensed, but generally Nursing Homes are licensed by the state and they ALLEGIANCE is owed to the Senior they care for, not their family. They are there to protect Seniors, even if that protection is needed from the family.
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A nursing home can lose Medicare or Medicaid funding for several reasons-how well the nursing home follows Medicare or Medicaid rules and regulations; the LTC facility repeatedly bills Medicare or Medicaid for incorrect amounts, incorrect therapies, incorrect or nonexistent resident expenses; fails to complete the CMS Medicare/Medicaid Minimum Data Set "Resident Assessment" or completes the Resident Assessment differently from a specific resident's medical records; or when Congress or the State Legislature decides to limit or decrease the Medicare or Medicaid funding; and so forth.

Rarely does a nursing home lose Medicare or Medicaid funding because of a problem with a resident's family. The nursing home might lose their license or have their license put on probation if a resident is mistreated or there are care issues--but that is a "State" violation, not a "Federal" violation.

IF there is a MAJOR unprofessional situation at the nursing home, you can file a complaint with the Departement of Health or Human Services or whoever regulates the nursing homes in that state. If you have a problem because a nursing home is limiting access to a loved one, then you can contact the Long Term Care Ombudsman for that state and ask them to investigate the situation.

You need to remember that the nation (and the world) is in a "Quarantine" situation because of COVID-19 and many nursing homes are banning family members from visiting their loved ones no matter what state the facility is in.
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Depends on circumstances. A troublesome family can, yes, be kept away from an elder for his or her own good. Call an ombudsman. They will tell you the next step. Look up who does the accreditation for Nursing Homes in your State. Should be as easy as google or other search engine and "who regulates nursing homes in (insert your own state).
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Odd or unusual situations can occur with nursing homes. In Louisiana we have had homes shut down by the state.

So, it’s all circumstantial. Keep us posted on your situation in your area.
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There is no direct funding by Medicaid or Medicare to skilled nursing or nursing homes. Funding is provided for the services rendered to a resident. or to the providers. Providers can lose their status as Medicare providers. A facility could lose their ability provide services for improper billing or illegal billing.

In my state facilities undergo inspections or review twice a year. Occasionally a facility does not pass their inspections and nursing facilities have on rare occasions been closed by the state.

Families are banned from visiting in many places due to the pandemic. A resident can place a family member on their do not visit list. A facility can ban if their presence is deemed dangerous or detrimental to resident (extremely rare).
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