>Medicaid isn't paying parents to not work. New parents will still have to worry about paying bills and the economy.

That would be up to their job if they had one of course, but Medicaid does have some cash benefits and if you have a baby on Medicaid you typically get auto-qualified for TANF so that covers a lot of bills.

>When those parents die, any potential generational wealth for their children will be taken by the state to pay back the benefits they received from Medicaid.

This would only be true if the parents received long-term care or something. And this happens to TONS of people who have otherwise been financially well off, they have to exhaust their assets before Medicaid starts paying for a nursing home. It's got nothing to do with pregnancy benefits.

I just looked it up and I'm wrong, estate recovery is for anyone at any age who is institutionalized and/or anyone over 55 receiving care. States can additionally choose care and populations from which they do estate recovery for their Medicaid programs.

All I know is a family member would get the Medicaid warnings about their estate each month in the mail.

Well of course it will because medicaid is healthcare for poor people, not people with generational wealth. If you are rich and use medicaid that's fraud, and medicaid should take double for that.