My mom finally has Medicaid, but I recently received a massive life insurance check. Will this affect her Medicaid?

Yes it was discussed. I have told her a few times about this policy.

Since it was cashed out, it's your mom's money. Medicaid for couples is different from singles though. Joint assets can be maintained since your dad isn't on medicaid. So there may have been no reason to spend down. You can exempt a few hundred thousand dollars so that your dad has money to live on. The social worker should have known all this. Was it discussed?

I have told her case worker, but I don't think she acknowledged it because medicaid and the Waiver program (pays for her home health) went into effect May 1. They have A LOT of debt, at least 6,500 of the money is going to debt alone. I have a good relationship with Dept of Social Services and I hope they'll let me give the money to my dad who does not receive any welfare so he can get much needed dental work done.

That would make it an asset of Mom, not you, and it enters into Medicaid calculations. Medicaid for couples is different than single person. Call mom’s Medicaid case manager and discuss appropriate uses for it. I hope it was disclosed on application originally. Your mom and dad need to be able to account for its spending, please be cautious. They cannot gift to you because beneficiary only comes into play if she died, not if she cashed out.

I actually haven't seen the check yet. It was mailed to my mom and she mailed it to me. I should have it tomorrow or the next. My mom owned the policy. She took it out on herself with my dad and me as beneficiaries.

Who owned the policy? Was the check issued to mom, dad or both.

The policy insured my mom and the beneficiary is my dad.

A question to clarify:

1) Who was the insured on the policy - your mom, dad or you?

If the one insured by the policy was your mom, that's going to be an issue. Medicaid will eventually find out and will stop her coverage until that money is spent down, even if it's already been spent (unless all the money is used for Mom's care and you have proof of that fact).

You cannot make that large of a deposit into their joint account - on Medicaid, Mom is only allowed a certain amount of assets (usually $2,000) and anything over that is going to trigger an investigation.

Again, if that insurance policy was for Mom, and has been cashed in, you need to contact your local Medicaid office and discuss this with them, because it's going to be a problem if you don't.

If the policy was yours and you cashed it in, then it won't affect Mom's Medicaid - unless you put it into her bank account. Don't do that.