If a person is on Medicaid, what can their money be spent on besides their care and the $60 a month allowance?

Does she have a burial account yet? If not, see a funeral home. Sometimes it is called insurance but my parents had theirs set up as an interest bearing trust

Yes, if she already has the 2k or lower in her bank allowed, the personal needs account money will take her over because its seen as an asset.

As long as the money is spent on her its Ok what you spend it on. That $60 can get her hair done. Snacks from the vending machine. Buy her favorite food. Buy her a new outfit. I was told to be creative. Then give the receipt to the person who is in charge of her PNA account and get ur money back. If its you that pays Moms NH each month and keep out $60, you deduct the amount, keeping receipts. Her bank acct should be 2k or below when you do the yearly renewal.

Me, I allowed the NH to become Moms payee. They set up a Personal Needs Acct for Mom. They had times they would have Chinese night and order out. I gave permission for them to take the cost out of Moms PNA acct. Her hair got cut there.

Anything that's for her benefit should be fine including lift chair or ipad. How about hearing aids, glasses, dentures or dental work if her state's Medicaid program doesn't cover these fully? My brother in law is on Medicaid and used some of his "excess" assets to pay for extra PT sessions once he'd reached the limit covered by Medicare. You should try to get the "overage" spent down as soon as possible. And in the future try to keep track so you can spend down the same month the account goes "over." Maybe keep a running list of possible things she might need so you'll be ready to spend.

Her money can be spent on her needs and to pay bills that she has.
Many families make the mistake in believing that the only bill a senior's money can go towards is a nursing home or some other type of care bill.

This simply is not true. If your grandmother needs a life chair because she can no longer get in and out of a regular chair, that is a need. It is also a bill.

If your grandmother still owns a car and that vehicle is used in her service for any reason (transporting her to appointments, running her errands, doing her shopping, etc...), that is also a bill and a necessary expense. Gas, insurance, registration, taxes, repair... that is all part of what you can spend her money on.

Does she have a pre-paid funeral planned? That is another qualifying expense her money can be spent down on.

Is her home in need of repair?

All of these are qualifying expenses. Talk to an elder law/estate planning attorney to be reassured.