The point is that people on Medicaid don't really have health insurance. They have a line of credit with the government. They are accumulating debt. In most -not all- states the law requires the state to collect on the debt. Again, by law. They can and do place liens on your property, etc.

This is very, very far removed from the idea of health insurance. Your property becomes the property of the government. With real health insurance nobody places a lien on your home for medical services rendered.