Can Medicaid stop Mom's benefits by considering VA over-payment an asset?

Thanks for your response to my question, pamstegma. I received a phone message from a DCF/Medicaid worker after we filed the re-certification. She stated that because of "assets" they did not know about (presumably VA monies overpaid; there's nothing else), she no longer qualifies. I haven't heard back from her since I called today. It seems that if they stop the Medicaid benefits, Mom would have to request VA to start their full benefits again! Otherwise she cannot financially afford her assisted living facility fees. I guess this is to be continued.

They shouldn't because you have to pay it back. Be sure to keep the records, letters, and repayment receipts. Medicaid may ask for that.