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Medicaid has a 5 year look-back period.....which means that any transaction made within that period can be subject to reversal OR subject to a suspension or denial of benefits until the value of the property transferred has been paid out of pocket by your mother.
So, the short answer is YES, it is possible that the house will need to be sold for fair market value OR your mom will be looking at paying for her own care for a period of time (determined by the gains from selling the house).
But, if she can hold out 2 more years and get past that 5 year window, she'd be in the clear.
Here's a very good link you can read about this issue: http://www.forbes.com/sites/markeghrari/2014/08/01/the-medicaid-look-back-period-explained/