A few years ago I got my mom on Medicaid and she is now in a nursing home. Part of the Medicaid requirements is that she sends a check for half her assets to the nursing home fund. The nursing home then takes their fees out of this fund until it is exhausted then Medicaid start paying. This is known as the penalty period. The duration of the penalty period is calculated by dividing the money mom gave them by the monthly nursing home fee. The fund should run out just as Medicaid starts. There is a problem with this. The nursing home fees increased during the penalty period and the fund ran out before the end of the penalty period. The nursing home now want me to make up the difference with a check for thousands of dollars. Has this happened to anyone? Any advice on what I should do? It seems that the penalty period should be adjusted each time the nursing home rates increase.