Medicaid does not take ownership of property - they have enough problems without going into the real estate business! Medicaid will file a lien and/or estate claim on real property owned by a recipient, to recover benefits paid.
If, on the other hand, someone quitclaims real property within 60 months prior to applying for Medicaid, the state will determine whether the applicant/recipient received "fair market value" for that transfer. If not, the applicant/recipient will likely be ineligible for payment for nursing home care or similar services (such as in-home care) for the period of time that the value of the property would have paid for that care at the private pay rate. For example, recipient lives in a nursing home for which the rate is $3,000/month. Recipient sells her property for $10.00; property was worth $9,010. Recipient will be ineligible for payment for nursing home services for three months. (The recipient will be eligible for payment of other medical services - physicians, hospitals, etc.)