It depends on your state Medicaid agency. Some will treat such payments as repayments and shorten the ineligibility period imposed accordingly, or eliminate it entirely if you use the entire $50,000. However, others will only honor payments going directly to your mother rather than expenses paid on her behalf, and some will only give credit for a complete "cure" -- the return of the entire $50,000. To know the practice in your state you will need to consult with a local elder law attorney. To find an attorney near you, go here: http://www.elderlawanswers.com/elder-law-attorneys.
For more on Medicaid’s asset transfer rules, click here.