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They told him if they move him to another facility in Penn, by the 100th day or after, does the Medicare start over? He was told by the Rehab Medicare will pay if he is transferred to another in Pennsylvania.

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No, Medicare does not start over since it is a national system. Medicaid, however, is state by state.
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Being a PA resident Don't think he can get Medicaid in NY. He may have to be transferred to a rehab in Pa and file for Medicaid, a Social Worker at the facility can help.
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Does he need more time in rehab? Or is he going to need long term care placement, such as assisted living or a nursing home?

I guess I wouldn't rely on the information from the rehab facility. Call the Medicare office in Pennsylvania with your question.
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