My dad had POA over my grandma and deeded the house to me, now got letter from medicaid recovery, can they take my house?

If the deed was signed over to you less than five years before your grandma went on Medicaid, likely they can. You may want to get the help of an elder law attorney, just to check all of the details. Some things depend on where you live. Please give that some thought.
Good luck,
Carol
Carol