It makes perfect sense if the intent is to destroy private property rights. Most family farms now have to be sold when the patriarch dies, because of the Death Tax, especially if they did not get proper advise to incorporate the farm.
Medical costs bare absolutely no relationship to the consumers ability to pay. That is the ultimate problem that needs addressed. How many people stand between yo and your doctor, all collecting a salary? Needs to be thought about.
In this case we are talking about someone on medicaid(a version of welfare), and medicaid usually paying nursing homes costs, sticking the future taxpayers with the bill which is usually very costly.
Not collecting that $$$ on death is the same as transferring it from the future taxpayers to the dead patient’s heirs.
Its theft to not try to recover that $$$.