Well... Welfare does not. But the states have the err, "freedom" to decide how to distribute and control welfare and medicare, as they first receive the federal money.
Mom recently had to jump through hoops for some new state authorization to keep her medicare in order to also keep her health insurance... even though she's on SS. They made it such a trial I blurted "They make it like this so some people give up!" and unfortunately it's probably the less capable who can't get it done.
Thankfully they approved it before the deadline expires, so she's ok.
It may be the best option Granny has is to rent out the property and move to a state where she can get services without it being counted against the property. And maybe by the time she (in the very distant future) passes, the laws will have changed or a court decision will have prevented them from taking the house from her family.