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Julie, had a stroke nine months ago, and cannot do bathroom duties without assistance. She fell in the nursing home 3 months ago and broke her hip and wrist, and since then has had a urine bag. She is in a wheel chair to prevent falls. She cannot shop, cook, drive, or bathe alone either. Now they are talking about sending her home. Her children are all retired, age disabled, and unable to give her the care she needs. She owns a home, and has about $1,500 a month income. What are our options?

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We found using the phrase "she's an unsafe discharge" was very helpful. Also the family needs to hold firm that there is no one at her home to care for her.
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You apply for Medicaid for her and ask the rehab to accept her as a long term care patient "Medicaid Pending".
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That sounds do-able, if not to easy. Thank you for your response, I hope that's all there is to it.
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Most states, as long as she intends to return home, she can keep the home, but if you sell or should she pass on without returning, there will be estate recovery. You may want an estate planner or eldercare attorney and you can use her funds for that. You also want to find out if there is "filial responsibility" law in your state that would require financial support from any or all of the sibs.

Have you got all the POA papers in order? (one healthcare, one financial)
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Grey man, start by talking to discharge planning AND the business office at the rehab. Some places don't take Medicaid Pending patients, and you'll have to do research to find one that will.

But yes, she's allowed to retain her home or Medicaid ( although she will have no funds to maintain it).

If you can sell her home and use the proceeds to private pay for a year or more, it will give you a wider choice of nursing homes.
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