Will Medicaid refuse help if monies are owed to parent?

Details, please. Are you saying that parents are owed money from loans to relatives and the relatives aren't paying it back? And those "receivables" could be counted as a disqualifying asset? Then the money might be considered a gift if there wasn't any paperwork to at least try to formalize the loan. If a true debt is owed to them but is uncollectible, it's uncollectible and worthless. If the parents are owed money from some type of lawsuit, or inheritance things are different. Details matter.

Like above, it depends on who is owing the money and if it will be counted as an asset. Most states have a 5 year look back. You can contact legal aid for more information on Medicaid, the 5 year look back & how money owed to them may or may not be an asset. You can also call your local Area Agency on Aging, they have specialists there that would be able to assist you. If you don't have an AAA, look for your local Bureau of Senior Services or senior center, they will be able to provide you with information.