Applying for Medicaid for a relative going into assisted living. She is now living in own home in another state. Where should we apply?

You can’t apply for Medicaid in both states as you have to be a resident to apply.

You apply in the state she resides in. Taking her out of state may require her to wait a certain period of time for residency. Medicaid is a State thing. Doesn't go over state lines.

Medicaid usually doesn't cover ALs. In my state, you need to pay at least 2 yrs private pay to be considered for Medicaid. Then it depends on if the AL has hit their limit for Medicaid residents.

Medicaid does pay for LTC if the person is under the cap set for that state.
Lets say the cap is 2200 total income but the person receives 2400. The extra 200 would need to be put in something like a Miller trust. Not all states call it that.

Yes as each state has different laws & there is no reciprocity between states.
Are you applying for community Medicaid or LTC Medicaid?
Medicaid generally doesn’t pay for assisted living but will pay for a nursing home if the person is indigent.