Will medicaid affect my immigration status?

Yes, prior use of government assistance can impact your application. You should consult an attorney before filing an application for adjustment of status.

When you say "we are on medicaid", this is confusing. If your husband is on medicaid, then you will need to find a joint sponsor most likely and that might be enough for you to qualify. If you personally are on medicaid, then you may have other problems about receiving benefits improperly, which could affect immigration, but I cannot tell precisely how on the limited information given. Without a retainer agreement, there is no attorney-client relationship, no confidentiality of communications, and I cannot be responsible for your case. No electronic signature is intended.