My 85yo mother has been "medicaid pending" at the nursing since Feb 6th. She currently gives her SS and her RMD from her IRA to the nursing home. Based on her IRA balance at the beginning of 2025 of $80k that amount is about $435 a month which we have been sending the nursing home along with her SS. I just got word from the Medicaid coordinator for the nursing home that Medicaid during their review of everything noticed that my mother was only taking the RMD aka the required minimum distribution and said she has to take take the maximum distribution. They said that the max is actually around$12000 a year for 2025 and she has to take that in order to qualify for Medicaid.
This is the first I have heard of this. I can't anything about maximum distribution even being a thing when it comes to IRA's or Medicaid. As far as we knew she was only required to take the RMD which she has been. I am extremely upset if this true as it is going to deplete the IRA faster obviously leaving us kids who are her beneficiaries little or no money at the end as the account will probably be completely empty in around 5 years at that rate. What am I missing here. I looked everywhere online about IRA's and NY medicaid and I cannot find anything about this. The guidelines clearly state they require only the required minimum distribution be taken which is what they are already taking. Any help on this will be appreciated.