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Would his social security go to the institution?

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Alzheimer's Dementia is permanent. It gets worse over time. It is fatal.

It is possible to place a loved one in a care center for a short time, to give the caregiver some respite.

It is also possible that a resident of a long-term care facility might return home (for example, if round-the-clock care has been arranged there, or for hospice care) or move to a higher level care institution.

Care centers have to be paid, of course. They don't care whether they are paid from SS or an inheritance or the tooth fairy. If Medicaid is involved then the SS or other pension money does go to the institution, and Medicaid pays the rest, up to a limit they determine. (Medicaid attempts to avoid leaving the at-home spouse in poverty.) The resident is allowed a small amount for personal expenses like haircuts and clothing. The amount varies by state.

Is the husband your brother?
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yes, he is my brother. Does this care and Medicaid vary per state? They are considering Texas, Michigan, Oklahoma or Indiana
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Each state administers the federal Medicaid program in its own way. The basic principles are the same, but some details may differ. Once he is on Medicaid in one state he would have to reapply to receive it in a different state.

Are these different locations being considered because of family in each place? Keep in mind that having 8 relatives in one state who never visit is not as helpful as having 1 relative in another state who will visit often.

Where does his wife want to reside? Where are they now?

Another factor to consider is that care facilities do not have to accept Medicaid. More do in some states than in others. Quality of care is not uniform, either. 
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