I heard being on Medicaid if you own your home, it will be taken after the person dies by the government. Is this true?
Medicaid will use estate recovery and liens to recover certain Medicaid benefits for individuals 55 or older, this only applies to Medicaid. This is not a myth, it has been true since the start of Medicaid, was reinforced and expanded by a 1993 law (Omnibus Budget Reconciliation Act of 1993), and is frankly one of the more messed up laws in the US. No they won't just "take your house" for enrolling in Medicaid, but if the bills are large enough the state can use liens and estate recovery... although most states refuse to actually do this.
The above being said, the provision is meant for long-term care and not for those who qualify for Medicaid based on MAGI (anyone who qualifies under expansion of the ACA). This doesn't mean it's a myth, it's not, it's two distinct laws. But it does mean that the average person has nothing to worry about. It is a rare practice and only occurs if the person has no surviving spouse and their children are not disabled and over 21. Learn more about estate recovery and Medicaid here.
This doesn't apply to tax credits, ObamaCare, or anything except for Medicaid.
To be fair, the ACA did nothing to create this... nor did it do anything to prevent this. It's no big deal for those under 55, and those 65 or older can get Medicare. However, it does kind of mean that those 55 or older can be better served by private insurance than public insurance when it comes to long-term care.
"States are required to seek recovery of payments from the individual's estate for nursing facility services, home and community-based services, and related hospital and prescription drug services. States have the option to recover payments for all other Medicaid services provided to these individuals, except Medicare cost-sharing paid on behalf of Medicare Savings Program beneficiaries.
Under certain conditions, money remaining in a trust after a Medicaid enrollee has passed away may be used to reimburse Medicaid. States may not recover from the estate of a deceased Medicaid enrollee who is survived by a spouse, child under age 21, or blind or disabled child of any age. States are also required to establish procedures for waiving estate recovery when recovery would cause an undue hardship.
States may impose liens for Medicaid benefits incorrectly paid pursuant to a court judgment. States may also impose liens on real property during the lifetime of a Medicaid enrollee who is permanently institutionalized, except when one of the following individuals resides in the home: the spouse, child under age 21, blind or disabled child of any age, or sibling who has an equity interest in the home. The states must remove the lien when the Medicaid enrollee is discharged from the facility and returns home." - Medicaid.Gov