Medicaid denied my sisters application because of her income which is $1290 per month ss. Is this right?

Example: She went into the nursing home Jan 1. Since she gets $1290, all but $30 would have to have been paid to the nursing home = $1260. She only gets to keep $30 a month for personal expenses. You need to prove that is where the money went. It's a whole lot easier to just make them the rep payee and let them worry about the financial reports.

The denial letter should be very specific and you need to sit down with the nursing home and get them as the representative payee. It will save you a lot of headaches down the road.