She is 95 years old, has mild dementia, is unlikely to be able to return home due to several problems. She was recently placed in a nursing home and she has a lot of credit card debt but all of her income goes to the nursing home. She owns a house worth $75k. I understand the credit card companies can't touch that according to Florida law. She lives in Florida.
I understand that the credit card companies file a form with the IRS and the written-off debt has to be counted as income on the person's tax return. And I read there are ways to show that someone in her situation is indigent and this written-off debt should not be counted as "income." I am not sure how Florida Medicaid sees this, if this could cause her to lose her coverage or if there is some form to fill out or something I have to do. I have POA.