Paying friends for help.

If your mom kept good records of payments, and what they were for, diaries, anything of the like it should not, but this is a good question to ask of Medicare/Medicaid itself.

People are allowed to spend money for their care; they are not allowed to gift family members and other persons.

I guess it depends on how much money she was doling out. Was it by cash or check? Is she close to running out of money and applying for medicaid?

How much money (per person) did she give each in total over the span of 5 years (which is the Medicaid "lookback" in most, but not all, states)? Did she write them checks or pay in cash? If each person was paid less than $600 in any given tax year, then they would not have required to be given a 1099 form by her. Need more info in order to give better suggestions.