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We will need to move her from her current reminiscence home costing $8000/month. The money she has left is in an account under my name. She receives $1100 from VA and $2200 from my dad's railroad pension. Should we apply for Medicaid now or wait until the money runs out?

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Mom gets a lot of money there. The A&A can't be used once on Medicaid. In NJ a person has to be in a home within 60 days or you have to reapply.
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My first suggestion is to clearly find out what moms state has as the maximum monthly income allowed for LTC Medicaid. At $2200 she could be just over the maximum, as most have it $2100. If so, she can likely do a Miller Trust to deal with the overage. You need an atty to do the Miller. 

But what could be a bigger issue is what medically “at need” mom needs to be for your states Medicaid program. LTC requiring skilled nursing care in a NH is covered by Medicaid. But for most states AL isn’t covered, and for some memory care isn’t either as neither are skilled nursing care. I’d try to have a care plan meeting asap to clearly see where mom is for “need”. Now if she’s not needing skilled there may be a waiver program that Medicaid does for MC or AL. I’d make this a real priority to find out. 

The place she is now, do they have a sister facility that is a NH and takes Medicaid? If so, that would be where I’d go to look at first.

Regarding VA Aid & Attendance, if she segueways to Medicaid, the A&A will stop completely (she can get it suspended) and will go instead to a $90 a mo personal needs VA allowance. She can’t get both Medicaid & A&A. Medicaid is better as it pays all of the NH room & board costs. VA A&A is great for lower cost AL or for doing a spend down, like what you all did. 

? For you? the $ in a bank account under your name, is mom’s RRR income & VA $ getting deposited into this account? 
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