Infected person should be examine
Have you been denied Medicaid coverage because you have been diagnosed with hepatitis C?
Pre-existing conditions with Medicaid and CHIP
Medicaid and the Children's Health Insurance Program (CHIP) also can't refuse to cover you or charge you more because of a health condition.
https://www.healthcare.gov/what-if-i-have-a-pre-existing-health-condition/
States set individual eligibility criteria within federal minimum standards. States can apply to CMS for a waiver of federal law to expand health coverage beyond these groups.
http://www.medicaid.gov/Medicaid-CHIP-Program-Information/By-Topics/Eligibility/Eligibility.html
It appears that the answer is Yes it's illegal to deny based on having Hepatitis C.
You have to meet the requirements of your state to enroll in Medicaid which may be different depending on financial, age, parent w/dependent child etc
It is not illegal to deny Medicaid you if you don't meet the qualifications.
From the government
http://www.medicaid.gov/Medicaid-CHIP-Program-Information/By-Topics/Eligibility/Eligibility.html
Are you disabled and below poverty level?