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Medicaid does NOT take her $ directly.
But as of the day that she applied for or transitioned to LTC NH Medicaid, she is REQUIRED to have all her monthly income- like her SS - be paid to the NH as her copay or SOC (share of cost). The facility has told you this. That $770 each mo less the $30 (her personal needs allowance) should be / must be paid to the NH. So every mo NH gets paid $740. In order for her to be within compliance for Medicaid that monthly income must be paid. 

If she’s been out of rehab and in the LTC part of the NH for May & June, she owes $1,460 as her copay. 

Often a NH is made their representative payee, so the NH directly gets her SS/SSDI and the $30 is set aside in a Trust fund account at her / DPOAs disposal at the NH. 
But it sounds like that didn’t happen and her SS/SSDI is still going to her bank account. And you are using that $ to pay her bills and not doing the NH copay. That’s it, isn’t it? This cannot happen under Medicaid rules. It could be viewed as a breach of the required fiduciary duty required of a DPOA and cause APS to get involved. 

Medicaid has no concern about debts.
Medicaid is all about income and assets.
Either you or other family will need to pay her property costs & other bills or she defaults on them. That is the harsh reality of Medicaid. The $740 to the NH must be paid. Otherwise she’s out of compliance for Medicaid and can be suspended. Or the NH as they have not been paid can issue her a 30 day notice to move out or they contact APS to get her made a ward of the state as her DPOA (you) is not doing the copay. Really you don’t want APS to get involved.....

Isn’t it the situation that she has a reverse mortgage? Why not have them take over dealing with the house. She needs to stay in the facility to get the care needed. She cannot find herself ineligible for medicaid because you did not follow the rules.
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I'm assuming mom has been on community medicaid. Have you talked to the business office office of the NH what it takes to switch her over to nursing home medicaid.? You may need to apply, rather than it just "kicking in". Make sure that you don't sign anything that makes YOU financially responsible for these costs.
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I'm sorry your mom is going through this. It could be a couple months or more before Medicaid would kick in.
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Hanging, have you been paying the share of cost to the nursing home? Please don’t be paying the house bills for your mother with money that should be paid to the nursing home as her share of cost. Your mother still owes the money due to the nursing home for her care from the date she was admitted even if the money is still being deposited to her bank account. You CANNOT spend the money that should be paid to nursing home for your mother’s portion of care even on her bills. You can’t just wait for Medicaid to start taking it or you could end up owing many months of payments with no money left in bank. Please check with the admissions office to find out how much money should be going to the nursing home.
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