Would appreciate some advice as this is all new to us. Both parents in nursing facility. How does Medicaid work?

Both were hospitalized. She was in a dementia care part of the hospital then moved to the nursing facility. Two weeks later husband had UTI and was hospitalized and MRI showed dementia also. Couldn’t walk and hallucinations set in. Now he has been transferred there as well.

Ah, Mac, I was assuming "the son" to be the OP's spouse.

Jo, where were your inlaws placed from?

Were they at home, were they hospitalized?

Someone took control and got them placed on an emergency basis, likely "Medicaid pending".

Especially because there are two people in the equation, and because Medicaid regs vary widely from state to state, your most prudent move would be to engage a certified Medicaid knowledgeable eldercare attorney. They are listed at Nelf.org.

You might find someone helpful in the business office e at the NH, but I would be cautious about trusting their advice complete, as they are looking out for their bottom line.

Consider the idea that if you sell the rental, the funds will likely preclude Medicaid eligibility, but will allow you to private pay, which might allow you to get them into a better home, if you don't like the one they are in

Their son is getting POA but probably won’t be granted till late September. We had to have letters for each to be placed in facility. Son had to get emergency guardianship.

Is someone else the POA?
Your question is a bit confusing to me because if parents are already in a NH, someone had to make the arrangements to place them.

Do they own 2 homes?

I think you need to talk to an elder lawyer because of your situation.

Your parent's assets have to be looked at and probably split. Then the split gets spent down and about 90 days before the money runs out, you apply for Medicaid. Their Social Security and any pensions they have will be used to offset the cost of their care.

A house is an exempt asset while living but because there will be no money, someone has to pay for upkeep. A second home or land has to be sold as does a car if there are 2. If there is a POA they are responsible to sell the house and get Market value. The proceeds will go for your parents care.

MEDICAID DOES NOT TAKE HOUSES. If the house does not sell by death it then becomes an asset which Medicaid will place a lien against. It will be the Executor's responsibility to sell the house so the lien can be satisfied.

Just giving you the basics. You really need to see an Elder lawyer well versed in Medicaid.

How did they get placed in the nursing homes? Did a state social worker step in and get emergency guardianship? I'm asking because normally you or other family member would have to apply for Medicaid or self pay the nursing home from parents funds upon admission until the funds run out and then apply for Medicaid. If the state has taken over guardianship, they likely will take control of the assets. Hopefully igloo will chime in because she's very knowledgeable about this.