Anyone have advice? Medicaid LTC

You have a GREAT advocate already.
Contact the Hospice Social Worker and discuss this with her or him. They can be a great help in locating a facility that will care for her if it can not be done at home. And they will be able to help the application process along. The fact that grandma is on Hospice might actually speed the process.
(and the fact that she is on Hospice they might be able to find a place faster since most facilities will take a Hospice patient since the life expectancy is shorter. Sounds harsh I know)

Medicaid differs by state. You can download the app from the Dept of Human Services for your grandmother's county. You will need her address, SSN, birthdate, case number (if she has been working with a social worker), current bank statements, medical bills received within that past 3 months of the application date, any statements from other assets/investments/property (like homes, cars), marital status, etc. Not sure what the "look back" period is for LA.

Take a deep breath. I agree, see if the Hospice has a SW who can help answer your questions. Maybe help with the application but I would keep on top of everything because in my state u only have 90days from date of application to spend down, get info needed, and find a place for grandma.

Is someone POA for grandmom? If so, this person is the only one who can provide the info Medicaid will need. The home will be an exempt asset for now and a car. But, Grandmoms SS and any pension will be used to offset her care. Meaning, there will be no money to keep up her home.

Before even applying you need to know Grandmoms financial status. Amounts in savings and checking accounts, CDs, IRAs, savings bonds, stocks, shares, annuities and insurance policies with cash in value. Because, most of this can be cashed in for her care in a NH. To get this info, you need POA for finances. Or some sort of guardianship that maybe the SW can help with. No one will talk with you without it.

There will be 5 years of bank statements requested. (Some states less) This is where any large amounts withdrawn will be questioned. Grandmom is allowed to spend for herself but she can't have gifted any large amts of money.

"also say she was inactive for a certain time limit" Sorry, I don't understand that phrase or this one "who pays for the stay in NH until she's active"

With my Mom, I transferred her from an AL to a NH. Mom had just enough money left to cover 2 months of Private Pay. I started the Medicaid application in April, placed Mom in a NH May 1st. This gave me time to get the info needed for Medicaid. I already had her spent down and placed so it was just getting the paperwork together. I prepaid her funeral with the cash value of her insurance policy. I had 90 days from applying to get everything together. By June I confirmed, with the caseworker, he had everything he needed and Medicaid started July 1st.

If grandmom has gifted a large amt of money within the 5 years, there will be a penalty period. There is a formula for this but during that period she or someone else will have to pay for her care and that could be approximately 10k a month. Or, you just continue to care for her at home until the penalty period is up.

Be aware, that if you put Grandma on Medicaid, when she passes they are obligated to recoup what they can. A lean will be placed on the home if Grandmom still has her home at her passing. So, if the house is sold, that lean gets satisfied. There are other factors that Medicaid may take into consideration, a family member who lived there and cared for grandmom and wants to remain in the house, a disabled child who lives in the house, etc.

I had a friend who cashed in a sizeable insurance policy when applying for Medicaid. You do not get face value when you cash in a policy. The parent died before the application was completed. The beneficiaries lost a lot of money. You need to weigh the pros and cons in placing Gmom in a facility. She is already dying. Do you want to lose everything she has to have her final days spent in a NH. I realize caring for her at home is hard and stressful. But can't family just pull together for a short time?