Can Dad still qualify for Medicaid?

We recently had to move our stepdad from an elderly care home to an Adult Foster Care home because his needs now exceed their capabilities. He had polio as a child and now suffers from post polio syndrome as well as COPD, emphysema and asthma. He is 85 years old. His body no longer is able to heal and he has no way to retain strength as his muscle tissue breaks down or atrophy. He is on a series of inhalers, nebulyzers and steroids just to keep his lungs clear so he can breath. He needs assistance for everything now including sitting up, combing his hair and putting on his clothes. He has been paying his way up till now, but the problem appears to be that his care exceeds his income. He has a nice pension from the state of Colorado of $3400 per month (before taxes) and his care from the foster care home is $3850, not including insurance, medicine and other expenses. This amount at face value exceeds what Medicaid allows for income, but I have been told there can be exceptions made though they are normally diabetes associated. He has only enough money left to cover about 6 more months of care. We are hoping that Medicaid can help cover at least some of the difference, but so far I have gotten a lot of different opinions from people who are supposed to know the answers. Can Medicaid help? If not, then what?