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They are receiving her Social Security.

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Ye's, if it is needed to pay the bill for her care. Social Security can't be enough.
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All her monthly income is subject to be used for her copay or SOC (share of cost) required by Medicaid.

If she has any recurring debts - like credit cards, life insurance policy payment, auto or property costs - all those she will default on unless family want to pay for them out of a sense of familial duty on her behalf.
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Is there a spouse at home who relies on her pension for support?
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As I understand as long as Medicaid paying for her, yes.
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If Medicaid is paying for her care the answer is yes. Since I knew my Mom would be in the NH for the rest of her life, I allowed the NH to become payees for her SS and pension.
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