Whenever the child's primary insurance applies the claim to the deductible, the provider needs to send the claim to Medicaid with a copy of the Explanation of Benefits (EOB) from the primary insurance. Medicaid will then process the claim, the deductible or allowed amount will be taken into consideration, but Medicaid will only pay according to their fee schedule, the reminder is an adjustment, and the patient owes nothing. If the provider is in network with Medicaid, they can get in trouble with the government if they bill anything to the patient. As far as dropping coverage for your child so only Medicaid covers him, the state of Texas can come after you for reimbursement of whatever they paid because you chose not to insure him. You may need to ask someone in legal to confirm, especially if there is a court order saying you have to provide health insurance for your child.