Can my elderly mother on Medicaid sell her home and buy one near me?

If your mom is on Medicaid and owns a home in that state, then the home is a totally exempt asset ONLY as long as she resides in that state. If she moves to another state, the home is not exempt and if she sells it the $ needs to be spent on her needs

Just a clarification ... is your mother already on Medicaid, or are you concerned that she may need to apply soon?

It may depend on Medicaid rules in both states, and a good eldercare attorney consultation would probably be best. You could try asking someone in the Medicaid office for whatever program she is on what the rules would be, making it clear that you think she can be in her own home closer to you and you are trying to spend the money on a new home for her, not for renovating your own home...I'm thinking that Medicaid lets you have one home and one car not counted as assets and you can buy and sell regardless, but it would not hurt to ask.