If my mom gets more than allowed Social Security income to collect Medicaid to pay for nursing home will she be denied?

So yes. You will be turned down UNLESS you utilize the laws in place that would enable your mom to get the care she needs through Medicaid. Call a certified elder attorney.

You need to see a certified eldercare attorney who can advise on setting up a Miller Trust. Which directs excess income to a pooled trust which reverts to the state.