Did I just find a Roth IRA Pitfall?

[Joe Tomko]

I recently learned something and I want to confirm whether or not it is correct.  

My father may end up in a nursing home in the coming months.  I just learned that virtually everything my parents own is suceptible to being used to pay for the nursing home.  They can protect one house and one car.  Personal investments, the Roth IRAs for each of them, and anything else can be tapped to pay the cost before medicaid will chip in.  Even RMDs from traditional IRAs can be tapped.

Does anyone know if there is a way to protect these funds so my mother doesn't become a pauper taking care of my father, then is destitute if/when she needs a home?  There is a five year look back where things can be undone, so I'm looking for a workaround.

As they will be moving to be closer to more family, I suggested using cash from the aforementioned accounts and the full equity in their current house and .buying a much more expensive house. This will protect some wealth. Could they use a HELOC for her living expenses?

It's a little frustrating that they paid all their lives to support others on medicaid and other government programs and now they cannot reap any benefit themselves unless they lose virtually everything they have.

Any thoughts?