Can missouir medicaid take a life insurance policy?

my cousin has a life insurance policy with a death benefit of $10,000 and a cash value of a little over $6000. She owns the policy and is on Medicaid due to being a dialysis patient. She has been on Medicaid for over 10 yrs. Medicaid is telling her she has to buy a pre paid burial policy or turn the policy over to a funeral home. I am the beneficiary on this policy..What can I do to protect her death benefit to bury her when she is gone? Can she transfer ownership to me? She has until May 16th only to resolve this issue.