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My uncle passed away 8 years ago and was on Medicaid at the time. My grandmother had lived with him for several years and still resides in the home. We've never received any type of notification from Medicaid/Medicare or the state (Indiana) as to what their intentions are with the property. What, if anything can they do since my grandmother lives there and is considered the beneficiary?

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If it was 8 years ago and the state has done nothing regarding estate recovery, I doubt they would do anything now. Just too much time has passed.

But the bigger ? is what is the legal status on the ownership of the house? You mention that gran was the beneficiary, so was property ownership transferred? Whose name is it in now? Was there a will? & Did uncle's estate go through probate and distribute his assets as per his will? or is it the case that nothing was ever really formally done (no probate) and taxes, insurance, etc on the house still remains in uncles name and family (you, gran, whomever) has been paying for whatever was needed?
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