Both of my parents are applying for Medicaid. Do they each file an application, and is the $2000 max for each of them?

I believe so, but you'll need to ask the Medicaid person in your state about the amount of assets they can have. Likely, it's $2000 for each of them. And yes, they'd each have to file, I'm sure of that. Filing for Medicaid is a lot of paperwork, but the social worker who helps you will be able to answer your questions because he or she will know your state's requirements. Medicaid is a federally funded program, but the states have some input as well.
Take care,
Carol

One thing that often gets overlooked for couples who are both Medicaid applicants or recipients is who is the beneficiary of any life insurance policies. This can pose a problem when one of them dies if they are the beneficiary of each other's policy.

For example, they each have a term policy of 20K with each other as beneficiary.
Then Dad dies and mom gets Dad's 20K as mom is the beneficiary, which in turn becomes 20K in income for mom and she no longer qualifies for Medicaid and all her new found "income" must go to pay for her care in the NH and in some states go to retroactively pay against whatever the state has paid for her care. IF you can possibly change it so that the beneficiary is someone other than them and that person is capable of using the $ for mom/dad's needs (like taking care of funeral and end of life related expenses or after death expenses or future expenses of the still living spouse) that would be best. Often this person is the family attorney or whomever is the executor of the estate that is named in each of their wills.