It is well known that medicaid will require spending down of assets to qualify. They make “compassionate allowance” to a recipient and/or spouse to stay in the primary dwelling until the recipient is done receiving services. Then the remaining asset is claimed to recover expenses. Not new.
Obamacare changed that for states that decided to go with expanded Medicaid. For those states that went with expanded Medicaid, assets were off the table. Income was the determining factor. The same happened with VA health benefits. I lost track of how states recover Medicaid expenditures, but there are several states that don't...