Depends on her Will and your state probate laws. It is very possible that the heir's estate acquires her bequest. Medicaid then descends to claim it. A good attorney may have a work around. See one.
If your brother died before he could inherit his share of your mom's estate (she is still alive, right) medicaid recovery doesn't come into the equation, a promise of an inheritance is just words on paper until the estate is settled at some future date. It would be usual that your mom's Will makes alternate provisions if any of her beneficiaries should predecease her.
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Who else, if anyone, was named in the title to the house or named as a beneficiary in her will?