What aide is available to help lower the cost of assisted living?

Yes, sell the car. I would assume the life insurance policy has no cash in value or Medicaid would have them cash it in. If it can be cashed in, I wouldn't. It may then be counted as an asset and effect Medicaid asset limit. I would call the insurance company and see what happens if Dad stops paying the premium. It must be high because after u become a certain age, premiums go higher each year. And who profits, the beneficiary and if Mom, getting insurance money could screw up her Medicaid.

Sorry, but when parents go on Medicaid, they get a small amount for personal items. Family then needs to help out. If gifts are given at Birthdays and Holidays, ask for money so you can buy them what is needed.

If your Dad fought during a War, he is not entitled to Aids and Attendance because he is on Medicaid. You can't have both and Medicaid pays more. But they do have a $90 personal Allowance that Dad my be able to get. Maybe even Mom. Be aware, though, personal allowances effect the asset limit so they need to be spent. Your County has a local VA office, call them.

I am very surprised that you even found an ALF that accepts Medicaid. Most are private businesses that accept self pay only and they tend to run at BEST about 5,000 per month per person on level 1 care (almost self-caring).

If you have found a place in which there is assistance to allow them to stay with Medicaid I think it will be up to family to try to help them in the ability to get their own toiletries and support this car so long as one or the other can still drive. However, it must be recognized that there will be added costs as level of care rises, and I am wondering if family or POA have discussed this with the facility. Hate to think of their having to move to a nursing home, but it may be the case. Also consider, at that time, move to Board and Care which may be less costly for two in the room.
I wish you the very best of luck.

Sell the car, will save a ton. Medicaid is paying for the majority of their care and if they die and have nothing there is nothing to worry about.

I am assuming that they never planned for their retirement. this is one of the consequences.

I think they need to cash in the life insurance policy and sell the car. A certified financial planner would be able to give better advice, but I think he/she may tell you the same thing. I'm assuming all of their needs are met at this ALF? If so, that is a good thing, they have a roof over their heads and meals. Health care should be covered by the VA and Medicaid.