My Mother is in a nursing home in Soddy-Daisy, TN. The staff told us that she couldn't have $2 thousand and get Medicaid.True?

I can guarantee the nursing home facility has a staff full of benefits coordinators who know the rules inside and out. Lean on them to determine what needs to be done!

If mother is single, then she cannot own more than $2,000 in "countable" resources. The key is knowing what resources will count and which ones will not count toward the $2,000 limit. If mother owns life insurance that places her over the $2,000 limit, then there may be options for assigning ownership of the excess life insurance to a pre-need funeral or to cover burial. It would likely be a good idea for you to consult with an experienced local Elder Law attorney and you can use the "find a lawyer" tab here on to start your search. Typically, Medicaid can ask for up to five years of bank and financial documentation. The staff at nursing facilities are often knowledgeable about certain aspects of Medicaid eligibility, but they are not attorneys and you shouldn't rely on a nursing home employee to give you advice on legal matters. IF your mother needs to "spend down" to become eligible for Medicaid, there may be better solutions that simply paying the cost of care until she runs out of funds...a good subject for discussion with a local Elder Law attorney.

Attorney Davis has provided a thorough answer. As stated, you could benefit from a consultation with an elder law attorney for guidance in protecting mother's assets from Mediciad.

Try to avoid Medicaid if you can. If any payments are made on behalf of your Mom by Medicaid, her estate is liable to the State of Tennessee for reimbursement anyway. The basic answer is, "yes." You mom will not be eligible for Medicaid until she has less than $2,000.