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Have a car (Mercedes) and not pay out standing bills to Nursing Home?

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If they are on Medicaid, there should be no outstanding bills. They pay their share of cost, usually the SS check, and Medicaid pays the rest. The car will be sold when they die, so will the house, and Medicaid gets the proceeds.
Do you see something not in compliance with this?
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I must be missing something here - if someone is getting $2K a month, but isn't paying outstanding bills, is there some reason why? Mercedes aren't inexpensive cars, so this is a bit surprising. Is this person still driving?
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