Stepmother is in AL, she will run out of money in 3 months. I applied for Medicaid but because of AL, there is a 1-2 yr wait. Any options?

You can give up your POA and let the State take on guardianship and placement. Let the facility know you would like to do this. A social worker may expedite this for you and apply through a judge for guardianship after you give up your POA and can likely assist you in giving up the POA. Let her know that you are unable physically or mentally to do this duty of care as a Fiduciary, and that there is not other family to do it (if this is the fact).
At that time the State will decide where she is placed, and will manage ALL, if there are any, assets.

Sorry, but ALs are not under the same rules as Nursing Homes. We had a local AL lose their Medicaid accreditation. The residents on Medicaid had to find other facilities in 3 days. And since ur POA, ur the person responsible for finding her a place to live.

Yes, in my State you have to private pay at least 2 years before Medicaid will pay for AL care. And the AL has to except Medicaid.

I would call her County Office of Aging or Adult Protection and tell them what you wrote here. In my State, you have 90days to apply, spend down, get info needed to Medicaid and place the recipient. I would allow the State to take over her care. You are too far away and can't be there.

Call the ombudsman and let her know the situation. Tell her that stepmom will need placement and you cannot be involved any further. The state will need to get involved and take guardianship if necessary. The facility she is now cannot just release her to the streets they may however send her to the hospital