If he died in September he is entitled to the check received in September which is for August. I don't think that is your problem. Did not Probate give you a Short Certificate so you could handle Dads debts and bank accts?
I agree with Glad. And the bank officer should be able to explain to you the freezing of this account. If they cannot you might consider calling medicare/medicaid at 1-800-medicare (you will be on the line a while but they are very nice when you do speak to them) to discuss and ask for explanation.
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Banks are required to freeze the accounts of customers when they learn of their death. There's nothing sinister going on here.
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Freezing accounts on death is common. Medicaid may claim those funds as part of MERP, Medicaid Estate Recovery Program.