Fire Insurance loss proceeds and medicaid

by Jane
(Gatlinburg, TN USA)

We were recently victims of a tragic firestorm back on November 28th, 2016 and lost everything. We are receiving the proceeds of our homeowners insurance. My husband is a cancer patient and has extreme RA and takes expensive meds. He draws SSI and I have been drawing my SS benefits for a little over a year. I turn 65 in December and I have received the forms to fill out. Asking about cash and bank accounts etc.

We plan to use these proceeds to purchase another home but may not find something before December when I am suppose to go on medicaid or medicare. Will this lump sum cause my husband to lose his medicaid? This isn't income, it is to replace our home. Our home would not have been counted against us if we had not lost it in this tragedy. Our income is too low to qualify for a loan so we will need that money to replace it.

His meds and treatment could wipe us out quickly if he were to be taken off of medicaid. Almost thinking a divorce would solve the problem!!!? Would it...if the proceeds were put in my name as the home was in my name and the check will be made out to me. Thank you so much. I am crazy with worry on this!