If Medicaid is denied what should I do?

Has Medicaid been denied or are you worried it might be? If it has been denied the decision letter should explain why and the appeal process. If you're just worrying in advance there's little you can do right now. Why are you concerned she might not qualify?

Well I meant the family cant take care of her forever and both of our credit scores are shot. We cant even qualify for checking accounts let alone loans. Im joint on my husbands account and my grandma has one from years ago with barely any money in it. I tried to set up a savings account but couldn't. Im not getting a loan anyway even if i DID qualify for one.

If Medicaid is denied, it's usually because assets were gifted away. So those people who got the house, car, savings, have to pay it back. They either take out a loan or start paying the monthly fee to the nursing home. And yes, they do get to take care of grandma forever, until it is paid back in full.