Hi Scrubby,
Geminigirl has provided you with the right information. Medicaid does vary from state to state to a degree.
I've never been on the program so I have limited information but it's my understanding if they decline payment you have options. IF your medical provider deems in a necessity it's usually covered. Your PCP/PMP may have to write some letters for an exception but if that happens it's usually approved.
Please share with us how this turns out for you. We all learn from one another. I wish you the best.
Take Care and Good Luck,
~Tuck
Since Medicaid is a state funded medical assistance program, you would need to ask this question of your local social services department - it very well could vary from state to state.