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Are my rental charges taken into consideration?

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Paying $ 1,500 a month rent is a normal daily living expense.
Paying your nephew $ 1,500 a month to do errands is not and probably would cause the Medicaid caseworker to do a transfer penalty on that $ 1,500.
You can spend your $ on pretty much whatever as long as it's for you or your property. Some things are better uses of $ - like buying funeral & burial plans, or getting expensive and extensive dental work done - but if you wanted to spend the $ on a face-lift or the iphone 5 you could.
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If the market value of your apartment is $1200/month and you are paying your brother the landlord $6000/month, that might raise eyebrows. But you are not expected to live without paying your way. The lookback is to see if you've been giving away funds that could have been saved for your own care.
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