According to an HHS website, 

"Procedural rules are intended to ensure that individuals are informed about Medicaid program requirements before they complete the application process. States are advised to tell applicants about the potential for Medicaid estate recovery during the eligibility determination process."

https://aspe.hhs.gov/reports/medicaid-estate-recovery-0

Many years ago, I had a client who received about $200 a month in home healthcare services under Medicaid.  When she died, the state filed a lien for the "per capita" expense for the average Medicaid recipient, which was something like $2,000 a month.  I think we managed to avoid it, and I don't know if they do the same thing today.  

In most cases, the state does not take the house when a Medicaid recipient dies.  It has a lien on the house, for the amount of benefits paid.  Some people who criticize government welfare programs all their lives, go to extraordinary lengths to make sure they qualify for this one.  Others, don't.