It is a spend down program. So, if you are a spouse, you should have to spend YOUR money if you want YOUR rights.
I know that Medicaid is a State Sponsered program. Here in Texas they will only allow the spouse to have $2,000 of income and you have to have no assets. Also, any jewelry other than wedding rings must be sold before Medicaid will pay a dime. Here in Texas they just passed a law that they will take your house after death. I just think the whole Medicaid thing is very strange and in a case here, Terri would not qualify. Michael would have to foot the bill and his bank statements, investments, etc. would be looked at and even retirement plans would have to be depleted.
I think that Felos and Greer arranged for Michael to put the rehab money in a separate trust fund for Terri so she could be declared indigent, and although Michael had access to the trust fund (mainly to pay Felos hundreds of thousands in legal fees), he could be free from declaring it as his asset, as well.