Pregnancy Medicaid & Buying not owning a car Q?

[Liz]

My sister goes to school during the day, and at night works as a dancer at a gentlemens club to pay for her share of the bills and pay for her car etc.. A few months ago she went to a car dealership and her boyfriend co-signed for a previously leased 2008 Mercury Milan, He is the main person on the title agreement, He had to co-sign for her because at the time she had no credit & needed to build it up. Recently she found out she is pregnant, so she stopped dancing. Her boyfriend(babys daddy) is saying he will put her on his insurance (it covers 80% of maternity cost) & pay her half of the bills and car payment because she needs a car and they don't want to ruin both of their credit. She told me they are struggling to keep up with the bills right now, because although he makes fairly good money, she has a $400 a month car note, his is $450, they have rent, plus utilities, credit card bills from before she met him, his student loans, insurance and other stuff that needs to be paid monthly. Since she isn't working she can't help him with the other 20% and right now..so our mother told her to get on medicaid.. I'm wondering even if she doesn't have an income, & despite the fact that her boyfriend is paying for everything, If they will still deny her because of the car- even if he is paying for it and his name is on it too- and they don't OWN it, they are making payments- so they don't have the title.. I've tried to google it, but can't seem to find anything beside your not allowed to OWN a vehicle over a certain amount. They live in TX by the way. Would anyone know anything about this subject, or where I can find an article or any information on it. It would be greatly appreciated. Thank you.