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Whoa, Aclee and EZ, she said her LAWYER presented this as a possible scenario. She never said that she thought that, but that when she asked her lawyer more questions the lawyer told her that. She was ASKED if that was the risk she was willing to take, not ASKING us.
FTR - To the OP, you lawyer sound shady. Please save yourself some trouble in the long run and look at a Quad A attorney. This person is using fear tactics to get you where he/she wants you, and this is highly unethical. This person is preying on you. No one is preying on medicaid. There is nothing for medicaid to "catch on to." The birth mother's expenses should be covered by whatever medical insurance or coverage she has, and the baby's generally fall into the lap of the AP's. That money is at risk during the 10 days. Also, if any hospital is not taking medicaid in an adoptive situation that is unethical for 2 reasons. First, it is coersion to the birth mother. Second, they don't want to settle for the amount of money that medicaid will pay, which is much lower than they can charge AP's. Run, don't walk, from this attorney. If you need to, get an agency b/c it does not sound like this person is looking out for anyone's interest but his/her own.