When should we start the Medicaid application if my mother-in-law has 1 year left on her LTC policy?

I'd check with facilities very soon to see which ones accept Medicaid. You'll want her situated in her new home when her LTC policy ends. Most LTC policies pay nursing homes, I'd suggest you get the move figured out soon. Otherwise, you'll be stuck with the full cost where she is until you can find a place.
In general, six months should be enough to get Medicaid in place, but paperwork has been known to be slow. So much depends on where she lives. Most of the time $2000 in assets qualities a person for Medicaid. You may want to contact Social Services for advice on when to start.
Take care,
Carol

I'd suggest thinking about moving her now with her LTC policy paying to a AL facility that either accepts a Medicaid waiver for AL or that is a AL that also has a SNF as part of their system. So she's already there and they want her to stay.

This will help with transition for her and for your wallet.

Look at her assets carefully to make sure she is 100% under your state's asset ceiling. $ 1,900 is close to the ceiling and you don't want something say that pays
only once a year but throws her over the state max to cause an issue. That sort of situation can be dealt with via a Miller Trust but you need a bit of time to do it and have it in place so she qualify's.

In general for Medicaid, they must show that
1) are 65+,
2) medical condition requires a skilled level of Nursing health care,
3) monthly income is less than her states ceiling 2K-2,200K,
4) countable assets are less than $2000 and
5) not gifted away anything of value during the look-back period.
Good luck.




Good for you to be planning ahead for all this!

Now would be the time the paperwork is extensive and you may need the help of an elder lawyer