How do we assist this terminally ill employee in getting benefits?

Q: “A 26-year-old employee learned a week ago that she has cancer that is terminal. She knows that she cannot work any longer. The company is very small and does not offer health insurance, and she is not covered on an individual policy. Is it a correct protocol to “lay off” this employee so that she may receive unemployment and other possible benefits such as Medicaid to financially assist with the remainder of her illness?” – Sue, Nebraska