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The nursing home in Florida is asking form bank statements and want to keep my dad's pension form the city of new York along with his social security, Medicaid, Medicare.

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Is dad in the NH for long term care (in which case the answer above is correct)or is he there for the short term as a rehab patient and is expected to return to the Assisted Living facility that you mention in your profile? Or is that still up in the air?
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Yes they can. If dad is on Medicaid every bit of income he has needs to go towards his care, with the exception of $50.00 a month, in many areas for personal expenses. If is income is over $2,000.00 a month, then I imagine he is on a Medicaid waiver program where Medicaid picks up the expense that your dad cannot cover with his income. Nursing homes in my area start at about $8,000.00 a month so Medicaid would pay whatever the difference is between dad's incom and the Medicaid contracted rate.
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