Mom is now above Medicaid asset limits in Michigan. Any advice?

My mom has dual Medicare/Medicaid coverage. Her Medicaid pays for aides to come in 2x per day, a weekly nurse visit, Life Alert pendant and a locked/alarmed med box that the nurse fills every week. Her annual Medicaid redetermination just came up, and in auditing last year's info they questioned some income, since they can access IRS information. 

Apparently, unknown to me (and I'm sure my mom), my mom owns some shares of Met Life stock, which are a countable asset. I did not know they even existed, as I don't do her taxes or anything. All I knew about was her SS and her pension money from my dad's pension, which were reported. Apparently back in 2000, Met Life went public/de-mutualized, and they issued shares of stock to people who had Whole Life policies, or something like that. So because of the dividend checks she would get (maybe $60 every 3 months), a 1099 is filed to the IRS, which then came up on the audit. So at yesterday's stock price, the stock was valued at about $7800. Now she is above the asset limit, and her Medicaid will be cancelled effective April 1. 

I am panicking as I don't want any gap in her services. She has mild dementia and Parkinson's which is getting worse. I have no problem getting those shares of stock sold and spending down the money on whatever we have to. This was a complete mistake; had I known about these stock shares we would have taken care of them before even applying for the Waiver to begin with. But what is done is done.  

I understand in addition to spending it down on her medical expenses, it can be spent on home repairs/furnishings, and credit card debt (which she has, but there would still be a couple grand left after her Discover card is paid off). So can part of that money be put aside to account for Capital Gains Taxes that will have to be paid next year? Or can those Capital Gains Taxes be pre-paid now? What about if this takes some time (getting the shares sold, getting the check, etc.), and I have to private-pay for the services in the meantime; can part of that money be used to pay me back? I'm waiting for a callback from her DHS Specialist, but am wondering if anyone has any info for me that you can share!