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The person coming into the home is using food, being taken out to eat being paid for by the elderly, providing sleeping area, providing a work area, water for bathing and laundry, etc. Some money is given as well. The elderly person is receiving some assistance because of them only receiving social security.

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NH/ALF may be less costly, however the 1:1 attn care is far superior, especially if the elderly person cannot advocate for self... Family MUST research and define employment/companion status and authenticity.
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There is a wealth of information contained in this site. If you copy and paste this to your browser. The number of days does not define elder exploitation.

http://nij.gov/topics/crime/elder-abuse/Pages/financial-exploitation.aspx
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Those disorders are not illegal but one would/could wonder what kind of care,
that person is providing, but it was the illegal part I was referring to.

The person asking the question is vague and I cannot determine who he/she is related to in the story.

If he/she is the elders relative call the cops.
If she is related to the person coming in,
it begs the question what is going on there?
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Having Schizophrenia and Bi Polar Disorder is not illegal. Exploiting vulnerable adults is illegal, no matter who does it. Sorting out what is exploitation and what is providing services and accepting compensation is the piece that is difficult, based on the limited information in this post.
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care111, the answer to "how many days" could be learned by talking to the case worker. It may also be spelled out in the application for aid. Do you have a role (such as primary caregiver, or POA) that makes it appropriate for you to ask? But again, exactly what the visitor is doing would make a difference. If he/she is providing services such as housekeeping, making meals, assisting with walking, assisting with any activities of daily living, then the rules may not apply.

I agree with Veronica. If you are aware of illegal activities, report them.
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Is the person coming into the home a relative?

Is the person coming in taking care of the elderly person?
Sent from some agency?
or

Is this a strange person using an elder's domicile

If this is a strange person, I would call senior abuse services for an investigation...
A crook, is a crook, is a crook does not have anything to do with being elderly except taking advantage, call the cops..."This person is scitsophrenic (spelling) and bi polar living an illegal life exploiting the elderly and others" you know your answer, already.

How are you related to the elder person?
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Care111 it seems you are also worried about "gifting"? You can talk to the Medicaid case manager about strict limits and try to get enough control over Dad's access to spending money that he can't give more than that.
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Yes, your reply indicates something illegal going on? Call the cops, they will sort out who is mentally disturbed and rectify the situation. One of you will end up with a restraining order, but I'm not sure which one.
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Is the elderly person mentally impaired? For example, is there dementia? Does the elder enjoy the visitor? Does the visitor help the elder in any ways? Having someone to go out to lunch with (even if the elder picks up the tab) can be a really nice break in the monotony.

Without knowing more about the situation it is really hard to say if this is exploitation or a mutually satisfying relationship. It does sound like the visitor should be contributing financially, not accepting money, but again there is not enough information here to come to firm conclusions.

If the elder is of sound mind (hasn't been declared incompetent), then he or she can make his or her own decisions, even poor decisions. You'll have to tread carefully if you are attempting to change this situation.
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I see there are other answers before mine was posted. if you have evidence of illegal activity such as drugs in the house trafficing etc. inform the police they probably already know the individual
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This is a difficult question to answer. If this person is providing companionship and assisting the elderly by keeping them safe it may not be a problem. Is the person a relative and/or did the elderly invite them into the home. Accompanying the elderly out to eat and having a meal provided as compensation would seem reasonable. You need to tell us what your involvement in this is and how you feel the couple is being exploited. Have they expressed to you that they are unhappy with the arrangement or do you feel that because the couple is receiving financial assistance that their visitor is wrongly benefiting from public money?
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Companion is one thing. This person is scitsophrenic (spelling) and bi polar living an illegal life exploiting the elderly and others. With this elderly person receiving assistance there are only a certain amount of days someone csan come in and take when it becomes illegal and takes away his assistance.
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This is a family matter. Sort it out. Home companions get 12-15 dollars an hour; they do nothing but chat. Housekeepers get 20, chauffeurs are 30 or higher. Mom interviewed a home companion who said she wanted 20/hr and full time work only. 160 a day for 8 hours. multiply that for 3 shifts and you are looking at 480 a day. A nursing home would be a lot cheaper.
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