Hello, Judy.  You probably need to consult with a lawyer about the situation you find yourself in.  Only a lawyer or someone involved with how medicaid is handled in your locale can best help you with this question.

That said, I think one way of handling the house situation would be for your mother to sell you (or you and your siblings) the house.  You'd be paying taxes on it and you'd pay for the upkeep and utilities.  Your mother is still going to need a place to live.  She could remain in the home and pay you rent for renting "your" house equivalent to what your costs are.  In other words, whatever income she has from state and county sources would be diminished by her renting the property from you.  The rent amount needs to be sufficient to be a competitive amount in your area, as if you were really renting the home to someone. 

In this way, your family could retain the home and your mother would have a place to live.  You all might have to contribute to its expenses a bit, if your mother's rent does not cover it, but this would mean your mother, in the absence of property (which in this case is her only asset or main asset?), might be eligible for the assistance you'd like to see her receive. 

Sometimes families have to do this when their elderly members are just above the subsistence level but sufficiently low-income that their expenses exceed their ability to pay.  Going into your own savings or nest egg ought, to my thinking, to be your last resort.  You will need your savings for your own retirement and elder care.

In some areas, there are also county agencies (or even the corporations offering the services like electricity) that might consider your mother for assistance with heating/air conditioning bills and for meals on wheels. 

Good luck with this situation.  I hope you find a solution to the financial issue that makes things easier for you.  What a loving thing you are doing, trying to figure out how best to help your mother.