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Medicaid is state run and will have specific income & asset limits to be eligible.
Most states have it at 2K in non-exempt assets & 2K in monthly income as that it the benchmark for being "at-need" or impoverished. If dad has a home, he can keep it as a exempt asset. But he will not have any income to pay for anything on the house as medicaid requires him to do a co-pay or an "SOC" share of cost in Medicaid-speak of all his monthly income to the NH less a small personal needs allowance (varies by state from $ 35 - 90 a month). For most, having the home is just not feasible and home gets sold with funds used in spend-down. Renting the home will have all sorts of problems as it could make them ineligible for Medicaid as it could make the home a non-exempt asset as it is income producing. If your state's program allows for rental, the rent would be a part of his months income steam and have to be used in his co-pay. imho the only way keeping their home works is if family has the financial resources to pay for everything on the home for the possible years & years of the rest of their elder's life and then either has a specialized deed situation or other exclusions to estate recovery so that Medicaid cannot place a claim or a lien on the property after their death (done by MERP and required to be done if they are on Medicaid). So really think hard about the long view on all this. None of this is simple or easy, good luck.
When someone goes into a nursing home on Medicare the clock starts ticking that first day. Eventually Medicare ends and this is where the Medicaid will pick up as long as you're applying for it.
The social worker at the NH was truly wonderful and helpful. This makes all the difference. And also as previously mentioned, the local Elder Care Services are a wealth of knowledge and support. Take care.
Medicaid does not "take over" from Medicare. Medicaid is a different program for the poor in every state so hard to tell what your particular rules are. Check with a local senior center. Almost every senior center in the US has a volunteer that will help answer your questions.