Once a person has been accepted for Medicaid, what can they spend their money on in order to stay below the asset limit?

If u are talking about the Personal Need Acct that a % of her SS in put into, she can spend this for anything she wants that is for her. Hair cut, per, styling. New clothes. Snacks, toiletries. And you are correct, it does effect the cap your state allows. The acct that holds the 2k or less (in my state) and the PNA acct cannot go over that 2k. Also, when Mom passes, the PNA and the acct holding the cap goes to her estate. It does not go to Medicaid or the NH. Both are Moms money she is allowed.