Elder law, Medicaid Spend down

[Jonathan Stastny]

I have a question for anyone familiar with medicaid and elder law.  My friends Grandma owns a home that she owed money on, but has over $4,000 in equity(the max asset value allowed in my state.)  I know that once medicaid begins to pay for bills, they can put a lien on the home for the amount that they've paid and the home must be sold for market value.  However, my question is, is that if she were to sell the home for only what she owes on it before being for medicaid, would that effect her eligibility?  Any insight would be appreciated.