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I'm not sure of the legalities of it, but sounds like since this was not an adoption plan persay, and more of a "surprise", then I don't see why you'd need to pay for her expenses. She can be responsible for her own medical expenses or as you said, be on medicaid. The baby's expenses will be covered by you if you end up as the father. You are not married and right now she is the mother so I don't see why you need to be responsible for her care.
What you have though is 2 different outcomes as far as adoption goes.
If baby is biologically yours then you do not need to adopt the baby. She will need to terminate her parental rights and you are the father. Your wife can then do a step parent adoption I would think.
If baby is not biologically yours then the biological father will have his right to the baby. If he does not want to do an adoption, then you and your wife will not be allowed to adopt the baby. If he doesn't know about the child, there are legal processes everything has to go through to ensure his rights are protected. For this scenario, I highly recommend you speak with an adoption attorney so everything is done the way it is supposed to be done.
Since there are so many possibilities and factors involved I think personally I'd be speaking with an attorney to make sure all rights are protected.
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Mom to 4 fun loving kids (adopted from foster care)
7 years into our forever family!
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