Escrow account is used to pay the taxes and insurance of the property

does an escrow account count as an asset when the person has medicaid

An escrow account associated with a mortgage is an account that is maintained by the mortgage holder and funded by the mortgagee. Part of the monthly mortgage payment goes into this escrow account to pay for property insurance and property taxes.

Only once the escrow has been satisfied... ie: you performed whatever it was that you didn't originally that caused the funds to be placed in escrow.

A simple escrow account that has a surplus at the end of year has the surplus carried over. Many times, the payment to the account is reduced to make the account even again.