This will be a question of local application of the Medicaid rules, so you will have to consult with an elder law attorney in your state. But as an example of how the law may be applied, here’s how the rules work in Massachusetts: A Medicaid recipient may have one vehicle so long as either (a) the value is under $4,500 or (b) the recipient can prove a need for the car. In your father’s case, he has two. So, he would have to get rid of one. He can sell one and spend down the proceeds. He may also be able to transfer the car that you drive to you, but that is a gray area. He’s not allowed to give away assets, but you may be able to successfully argue that he has ownership in name only and the vehicle is really yours. Again, you need to consult with a local elder law attorney on this given the local variation in how vehicles are treated and the specifics of your situation. To find an attorney near you, go here: http://www.elderlawanswers.com/elder-law-attorneys.