by Chris Orestis, Life Care Funding Published July, 2009: New York State Bar Association Elder Law Journal Medicaid Eligibility Life insurance polices are unprotected assets and state Medicaid programs expect any policy with cash value beyond a minimal amount to be surrendered for medicaid eligibility. Those proceeds would then be spent as a medicaid spend down on care before Medicaid eligibility and payments would begin. Instead of surrendering a policy for minimal cash value, the owner could instead receive considerably more through a life settlement. The use…