If my husband has to go in a NH and is on Medicaid, would everything revert to normal financially when he dies?

Brit - Medicaid is required to do an attempt to recoup or recover any & all expenses paid for by Medicaid on him. This is MERP - Medicaid Estate Recovery Program. All states are required to have some sort of MERP system in place in order to get the federal funding aspect of Medicaid. Your state DHHS should have details on your state's MERP on line.

Now just how MERP runs will be very much interdependent on your state laws for probate, property rights, etc. Like for example, MERP is utilmately a probate action, so like for TX which is a class of claim probate state, & MERP is a class 7 claim so all other classes 1 - 6 have to be paid first, then MERP paid after Class 6.
This would be different than a state in which MERP can be a lien on the property or a equal level of claim probate state.

Now after death, just how all this is done will depend on your state. Some states have the paperwork neatly dovetailed so that they know there is an existing spouse and so no MERP done. OTher states will need you to file a document to get the spouse exemption. Some states have MERP done by actual state employees and other state have outsourced this to contractors who tend to approach MERP as a debt collector and get a % of the recovery.

Personally I think it's a lot to deal with especially if when the death happens family is still bereaving or dealing with other issues and overlooks MERP. I'd get all your legal together now and go speak with an elder law attorney or a good probate attorney who deals with Medicaid in your state to see where you stand and what is likely to happen paperwork-wise so you are not caught unawares. Good luck.

This site has a drop down list of atty's too, it;s in the money & legal section.

thanks for info, I do have survivor benefits to both but was wondering if Medicaid still would want part of it even after his death

No when he dies, his pension may stop completely unless he has survivors benefits. His SS stops, but there are survivors benefits you can apply for, although if you worked all your life, your own benefits may be higher.