In order to qualify for Medicaid, you must affirmatively apply. No one is ever forced to be on Medicaid.
Medicaid looks to the assets and income of the person applying for Medicaid, and also the assets of a spouse, if any. A spouse at home may have up to around $120,000 in countable assets, plus a house, one car, and personal property. The applicant can keep up to $2,000. Any assets over that combined amount must be spent down or converted into a type of asset that is not countable.
Following the death of the Medicaid recipient, the state can only go after assets that were titled in the name of the deceased Medicaid recipient, not those of the surviving spouse.
If you need more detailed information, I suggest you pick up a copy of my book, available here: http://www.MedicaidSecrets.com. I really think it will help you understand the rules a lot better.
