My mother-in-law makes too much money in pension and Social Security to qualify for Medicaid, but not enough to afford nursing home costs. Any advice?

In the state where we live, my BIL's social security and small pensions are enough to put him over the Medicaid income level for Long Term Care Medicaid. However when they considered his fixed medical expenses (Medicare, Medicare supplement, prescription drug plan) that brought him below the limit. So as I understand it, Medicaid eligibility is based not on gross income but income minus allowable medical expenses, "countable income." So long as her assets are at or below what's alowed in your MIL's state's Medicaid program, she may very well be financially eligible for LTC Medicaid. As Joann29 mentioned, your MIL's state may also allow for a miller trust or qualified income trust, where her pension and SS would be deposited, her NH share of cost paid out of it, and any money remaining after she passes away would go back to the state's Medicaid fund.

Have you actually applied and were denied? Consider consulting with a Medicaid Planner for her resident state, as Medicaid rules differ by state, even if you haven't yet applied and don't think she'll qualify.

An Elder Waiver program helps seniors to "age in place" in their homes.

Medicaid requires that she also medically qualify: most states' Medicaid programs will only pay for LTC and she needs a diagnosis or medical recommendation for this.

Call your county and ask about the Elderly Waiver, what will eventually need to happen is that the state will take all of her money and put her on Medicaid.

You need to see an elder lawyer and see if your State Medicaid allows for a Miller Trust or a Qualified Income Trust. The overage can be placed in these trusts every month so Mom qualifies . Once the person dies, the money in the Trust reverts back to Medicaid.