Can a home jointly owned by siblings be taken by Medicare in order to qualify for a nursing home?

Medicare does not take homes. It is just an insurance program for seniors. Medicaid is probably what you are referring to. Medicaid is also an insurance program, except for low income people. Often people do need to spend down to qualify for Medicaid. Since so many people own the home, I do not know how it would be handled, particularly since it is not the primary residence of your sister who needs to qualify. Medicaid itself does not take properties, but the state may seek to recover money used in her care. In the case of the home that has so many owners, I do not know what your particular state would do. Since she does not live there, perhaps it could be worked out that the other six sisters could buy the one sister out, then that money be applied to her care. This is a good question for the Medicaid counselors.

This is sticky and you need an attorney (elder care is good but you might be better off with a probate attorney) to deal with this and you might as well do it now because it will be an asset issue for the oldest sister if and when she applies for Medciaid BUT EVENTUALLY this will be an issue for the other sisters in 1 way of another when 1 passes away or others need Medicaid or there is some family rift. If Sissy #1 didn't live in the house and doesn't have that as her legal address or have it on file for homestead exemption with her name on it, then Medicaid is probably going to look at it as a non-exempt asset with the value of the asset based on the annual assessor's property tax report. Assessor's bill usually goes out right about now or right after the first of the year, with the tax bill) . In general, their non-exempt assets are about +/- 2K for Medicaid compliance. So unless the property is assessed at less than 14K, then it's going to be an asset that can keep her from Medicaid acceptance. Which we don't want to happen, right?

Now did the property go through probate and has the ownership been legally changed to all sister's name as individuals or just how is the property titled?
If it went through probate and is in everybody's name and your family is really truly all kum-ba-ya with each other and logical and calm and there is no-one really at need or all the sisters have good credit so that there are no issues to cloud the title (like judgement against them) , then the simplest things could be to use the assessor value (say it's 100K) and divide that by 7 so all have 15K equity in house. Then all of you buy Sissy #1 share (everybody pays 2K+) and she gets 15K deposited as an asset which she spends down to be Medicaid compliant as needed. That's pretty simple and probably gets that potential problem resolved. She can do this a a quit claim deed X 6 to total the 15K assuming she doesn't have any issues to cloud her QCD.

But here's where you really need the probate attorney or a good real estate attorney, they need to craft a new property deed so that all the names get moved to reflect ownership and how those other 4 relinquishing ownership are to be compensated or paid for their share and issue a deed of trust / warranty deed to the 2 sisters who co-own the house and do whatever for what happens to the property in the DOT when they die and who predeceases whom. If all of you are getting along in age and facing NH, then you might want to have it so that none of you inheirit the property directly so you can qualify for Medicaid if it looks like that is what is going to be needed or there are some sisters with kids and some without and that get's be an issue. The attorney will know how to structure all this, like a life estate for how the property is owned. Also it's a good time for all of you to do or update all your legal and be there for each other to encourage or remind. My mom did all her legal back a decade ++ ago (thank God) and she did it without protests because her brother and SIL also did theirs and updated the special needs trust for my cousin, we all went to the same attorney and then dinner after each visit. It really took the stress off and everybody was transparent in what was done and signed off as witnesses so no family rumors or misinterpretation. I was executrix for 2 aunts and it was filled with rumor mongering bs which I never want to deal with again. Doing legal where there are other family present and in agreement just makes it all so much more pleasant and even. Good luck.