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Take the penalty and move on; unless the penalty is so severe that it's not worth the downtime. Otherwise, find a lawyer that specializes in the appeal process...even if you have been denied; often the right words on the appropriate stationery can get you the results you can at least live with.
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You are not responsible for your grandmother's debts, except to the extent you can pay them out of her funds. I hope that you did not sign something taking responsibility when she went into long term care.

Is Medicaid taking forever, or was she actually turned down? If she was turned down, does that mean she has some resources that disqualify her? If so, the solution is to spend down the resources. If this is over mistakes on the application that make her appear unqualified, then those mistakes have to be fixed. You need to know what disqualified her (if that happened) and then fix it.

I really, really feel for you. I don't know which was harder to deal with the first year -- my husband's dementia or the bleepin' paperwork. I had the assistance of an elder law attorney and I STILL had to spend down more than the lawyer advised and redo the application. Yikes! But there is light at the end of the tunnel. Do whatever it takes to bring the application to a successful conclusion, and your burden will get significantly lighter.
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I truly don't think you would be held responsible in any way. The medicaid process does take a long time. At least you have her house which as Carol said, Medicaid will put a lien on and will want to be paid from the proceeds.

Try to ease your mind that all will work out and that she will be approved. This is a big job, I know and easy to say "don't worry", but honestly think it will be OK.

My mother didn't own property at the time, so it was easier for me; but I do have an elderly aunt in a nursing home and her POA got her approved by medicaid even though her house is not sold as of yet. Bless you and take care.
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Hi Shai,
I don't think you'd be held responsible. Medicaid qualification takes time. The house being for sale may be slowing things down, but Medicaid can put a lean against that to use at the time of sale. Try contacting the long-term care ombudsman for your area on your state website or at www.ltcombudsman.org. Here, you'll type in the Zip code of the home. This person may be able to advise you or help point you in the right direction. Good luck.
Carol
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