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Mom lived and passed away in Veteran nursing home in PA. When I placed her there, I was asked if she had a life insurance policy. I said no. I knew of a policy that was dropped by her former employer when the company she worked for was sold. Medicaid insisted that she had a policy. I could not prove that the policy was no longer current. For this reason, she did not qualify for Medicaid. 

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Yes you must. Or get sued.
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Yikes! I'm getting different opinions! Since she was not receiving Medicaid, I do not have too.
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Thanks for getting back to me.
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The nursing home can still sue under Pennsylvania law. Not Medicaid, no because they refused to pay. So under filial responsibility law, a nursing home collected $93,000 from a son who did not submit all assets on the Medicaid application. See HCR v Pittas.
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