waiting period for Nursing home coverage by Medicaid. Medicaid doesn't want people saying, well we will probably have to go a nursing home in 2-3 years, so lets take out a RM and spend it and then let the state pay the $5000 a month bill for the nursing home.

Medicaid requires people who have a equity in their home to use it to either pay for a nursing home themselves or pay Medicaid back for paying for a nursing home. For examle, Medicaid allows a spouse to continue to live at home until she dies, while paying the 4-5k a month for her husband to be in a nursing home. Medicaid only does this with the agreement that if the couple has any equity in their home, that Medicaid can use it to recoup their costs. It is actually a fair system.

So big picture is, if they took out a RM within 5 years of applying for Medicaid, there will be a waiting period win which they don't qualify, that is dependent upon the amount they took out and spent.