@ akuperma
What you say has a degree of intuitive appeal. But you will need to set the bar a bit higher before asserting that many frum yidden are transgressing a prohibition. I personally discussed your very point with one of the top Poskim in the US and he disagreed with your definition. As a matter of fact, in that conversation I was the one advocating the same position you are.
So, here is my current take on the matter:
The government has stated anyone meeting a certain condition gets a set benefit = entitlement
As an aside, I’m sure you are aware that there is a whole cottage industry assisting wealthy families to spend down assets to qualify for medicaid upon entering nursing homes.