My parents don't have many assets & don't have enough money with retirement & Medicare to pay for assisted living without aid to help. I am worried about what happens if during the 5-year look back my parents cannot drive I put their car in my name to take them places, also started to downsize their furniture. What happens if there are things that have been transferred or sold within the 5 yr look back? Aging people can decline a lot in 5 yrs as mine have. I never worried about stuff like this until I needed to learn more about assisted living.
It may be actually easier if they have more serious health issues to get them into a NH. NH medicaid is dedicated funding and theres lots more beds. It's something to speak with their MD about to see if their current health history shows the need for skilled nursing care (that means they need a NH) and if their MD will write orders for skilled nursing care needed.
About the caregiver exemption, it will require documentation to support the exemption. If you still work full time at another job, you may not be considered eligible for caregiver exemption. Really others are spot-on that your folks need to speak with an elder law atty to see what issues may be there if they did stuff as a DIY.
Just read that property was transferred to you when you started providing care for your folks. How long did you care for them. Some states, the home is exempt from Medicaid penalty if transferred to a caregiver child if, IF they provided necessary medical care for a period of two years prior to entering a nursing home. Not assisted living.
You need to see an elder law attorney. The house cannot be transferred until after two years of care.
I agree that consulting an attorney specializing in Elder Law would be a good thing at this point. Use your parents' money for this -- it is on their behalf.