My siblings and I bought a house for our aging parents (87/86) and then had a Quitclaim Deed drawn up for them which is a Life Estate.

I don't understand the situation.    Who quit claimed to who?   Did you and your siblings quit claim to your parents?  

Did you do this on advice of an attorney?

If I remember correctly, a life estate means someone else owns the house, but the residents (your parents in this case) have the right to live in the house until they die. That would essentially make you a landlord with them as non-paying tenants.

I'm no attorney, but it seems to me your parents don't own the house so Medicaid doesn't get to have any part of it. You need to contact a trust and estate attorney, however, to be sure of how this works.

Ditto to seeking accurate guidance from a certified professional *for your state*. There are too many other variables and unknowns for you to crowdsource an answer that may be inaccurate and cause your LO to lose their ability to qualify for Medicaid when it's most needed.

Remember that Quit Claims may mean little. What means something is the NAME ON THE TITLE. I would see a Lawyer before doing anything at all here. To make a mistake would mean disaster. I am assuming that you and your siblings have SOLID proof of your purchase of this property with your own money.
I hope Igloo or mstrbill are around as they may have more information than I do, but again, I would caution you, before making a move (and in some respects already too late to consider this given you have purchased a home) you need SOLID PROFESSIONAL advice for this. Wishing you luck. Hoping you will update us with what you have learned.

Medicare doesn't care about assets. Medicaid does.

You really need to talk to an eldercare attorney or Medicaid planner in your state.