You’re right, this is not right. But it happens. We advise clients not to pay nursing homes, other than the resident’s income, while the Medicaid application is pending in order to avoid this situation. The other option, if the facility insists on payment, is to lend the money to the nursing home under a written agreement. Perhaps you can convince the nursing home to recharacterize your payments as a loan –- which, in fact, they were since you anticipated being reimbursed -– and to resubmit its claim to Medicaid. We can’t advise you on whether and how this would work in Michigan. You should consult with an elder law attorney in your state. Here is a directory of attorneys: https://www.elderlawanswers.com/elder-law-attorneys