>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.