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Medicaid is a huge, HUGE program run uniquely by each state but within overall federal guidelines. Everything from those Happy Teeth vans that go to schools under CHIP, to loaning breast pumps under WIC, to LTC skilled nursing care in a NH. One thing they all have in common is that all are “at need” programs. So the applicant must show to be “at need” both medically AND financially for the exact particulars of the specific Medicaid program he or she or they actually have filed for Medicaid.
if he, or she or they were determined to be ineligible, then state Medicaid program or the outside contractor - who is managing that specific program - will send a letter as to why they are ineligible. They can appeal the disapproval but it has to be within whatever tight timeframe to do an appeal.
so did they actually file for a program & get a ineligible letter? If so they and whomever is thier DPOA need to get that letter and go to their Area on Aging Office to get clarification as to what exactly it means
BUT
If is this more that somebody told them they had too too much $ (if this is it, unless they know their exact details on the couples income AND assets it all nonsense & fear speak), or told them they had too too expensive of a home, or had a adult child living with them that disqualifies them or too, too much of something else.... whether or not it will matter will depend on the source of the income AND type of asset AND knowing the rules for the specific Medicaid program for your state (like gifting of funds or commingling of accounts).
Otherwise is all just conjecture.
as others have said, for couples Medicaid, really an elder law attorney- especially one CELA level- will be worthwhile for them to have.
For NH care 1k is well under the cap for Medicaid. The house does not count as income unless its worth a lot. I can't believe together they only get 1000. My DH worked blue collar and the highest he made, in later years was 50k. I worked full and p/t jobs, the highest about 30k. Together we get about 2300.
I think you may need to call Medicaid and run this by a caseworker. Doesn't sound right.