So to qualify for the elderly waiver, it is my understanding that the patient cannot have life insurance with a cash value. Correct?

Yes when you apply for Medicaid, a life insurance with cash value has to be cashed in. Then it needs to be spent down. For my Mom her cash in value was a little more than 10k. I was able to use that money towards a prepaid funeral for my Mom. Its a Medicaid Funeral Trust.

I suggest you contact Social Services and make an appt with a Medicaid caseworker to find out what you need to do so Mom can get Medicaid.

Can’t speak to an elderly waiver but know that when my mom ran out of long term care policy while in nursing home, in order to qualify for Medicaid, dad had to cash in a whole life insurance policy. It was in his name, he got to spend it on their common expenses, it wasn’t “taken” by the nursing home or anyone else. But it couldn’t remain in force and Medicaid pay for mom’s care

Is there an "elderly waiver in California"

Different criteria apply depending on which state you live in. Google "elderly waiver in ______state" and fill in the blank with your state. You didn't fill out your profile so idk.