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Not sure what DSHS is, but in our state the DHHS (Department of Health and Human Services) is the agency that administers the state's Medicaid program. I don't think it matters to them whether or not there is a durable POA, but it might actually be easier if there is one. There is someone who has to keep records, fill out the annual eligibility paperwork, act on behalf of the principal if they are temporarily incapacitated or become cognitively impaired, etc. My husband was POA for his brother who ended up in a nursing home because of Parkinson's and he had no problems dealing with DHHS as POA.
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In my state DSHS is Department of Social and Health Services.
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My SFIL became a ward of the state and required Medicaid for his facility care. His wife, my MIL is in LTC on Medicaid. I filled out the app for her. I don't think it makes any difference. It shouldn't make a difference. That being said, they might have an easier time getting the correct and current proofs from a county or court-appointed guardian since they "know the drill".
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Bumping up for others to respond.
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I was DPOA for my Mom and I was glad I had it. The NH kept me in the loop. I had say in her care. You probably don't need it to get Medicaid but its a nice tool to have.
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