You need an attorney.
I'm sorry but I agree with geo. You are correct that you are being taken advantage of. If you continue to try with her, you will just be spinning your wheels. The smartest thing you can do is talk to an attorney so that you get as much custody of your kids as you can. I'm sorry you're going through this. Life is so hard when other people put us in impossible situations. In these cases, all you can do is change course and move forward in another direction.
She won't "stop" because she doesn't have to......she's getting away with it because you're allowing it.
Your post is confusing..........do I see that she's getting medicaid health insurance?
This is kind of confusing--when you say she is getting child support, does that mean she is getting it from you or from the state?
Ok, so apparently there are no joint bank accts. and she is living under the philosophy that what she makes is hers and what you make is joint!