Almost went through the same situation, was able to sell the house and get some equity. Regarding the meds, take the advice about trying to get on some of the programs where the pharmaceutical companies will provide non generic drugs at little or no cost. Go to the drug companies websites for more info, or contact the social worker at a local hospital-they are familiar with the programs-I know this from experience. Most chain drug stores sell generics at really low prices; as low as 10$ for a 90 day supply. Check out Wal-Mart, they were the originator of the generic drug plan. If they need insulin, Wal-mart sells Humulin R over the counter-no script needed for about 25.00, half price of anyone else.
Been there, done that, got the t-shirt...best of luck with everything else. I was in a pretty deep hole about a year ago and was able to persevere-it can be done.