She plans to spend down what assets she has until she only has the $14,000 in annual social security- then go HUD, food stamps and all.
First off, not knowing the Medicaid laws in Texas (each state has their own), I’d help her to make sure her SS income does not exceed the qualifications for a nursing home should that come into play. Her health could turn on a dime, and she needs to know the specifics.
Whatever she has, make sure she spends it on herself and her needs as that could affect Medicaid look back. No gifts to anyone that could ding her for future NH care. Spend it on dental care (Medicaid doesn’t cover much), eyeglasses, clothing, shoes, and anything healthcare related. A pre-paid funeral plan is also a very good idea, not a fun one, but essential. She also can pay off her car as that is an asset they can’t take as long as there is a reasonable expectation she will be able to use it.
Hate to be a wet blanket on fun ideas for spend down, but that’s the reality.
I haven’t been through the Medicaid mill myself with my parents, but private care, and I’ve learned a lot at agingcare.com. Post your question there and people local to your question will be able to help you help your friend.