The short answer is “yes, you can” sell your house. However, there may be consequences.
A home is usually an exempt resource when you apply for Medicaid. Cash from the sale of a home, is not exempt and counts toward your $2,000 resource limit. Therefore, if you sell your home, you must report the sale to Medicaid within 10 days and you will probably be kicked off of Medicaid until you do something with the cash. One option is to spend the cash on nursing home care until you’re broke and then go back on Medicaid. That;s probably not a good choice because that does nothing to enhance your circumstances or your quality of life. Another option is to speak with a Certified Elder Law Attorney about ways you can plan for your future needs, or the future needs of your spouse or children (especially if you have disabled children or grandchildren).