Hello i went through the same thing with my son who is now two years old. We were approved by medicad but when they found out how much money was coming in to our house they cut him off. They then told me that if he was to get back on medicad i would have to move out of my parent's home. I did and now my son i living with my mom i stil take care of him. Those kind of people don't understand that when it is your child you would go through heaven and hell just to make sure that they get the care that they need. I think that you should find you a very experienced lawyer and sue the hell out of that insurance company. Because if it were them they would do the same for their child.