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Yes, Medicaid covers reconstruction of congenital deformities such as microtia (absent, or ear remnants. I would recommend going to a Craniofacial Clinic associated with a pediatric hospital.
Insurance coverage for rebuilding the ear is possible. There are a few options for improving hearing (BAHA or canal reconstruction) and Several options for rebuilding the ear : (Rib graft or implant or prosthetic ear) can be discussed at your surgeons consult, but we wait for 5-8 years to start the repair. One option would be to contact LSU Baton Rouge Facial Plastic Surgery for a consult. Best Wishes