Medicaid Insurance Policy

Medicaid is one of two types of government-sponsored health programs in the United States, along with Medicare. Millions of people are covered under this entitlement program, which is designed to provide coverage to those who can't afford or qualify for individual or group health insurance plans. Both state and federal governments fund the Medicaid program; the rules to determine member eligibility are also done with the cooperation of the two types of government.

About

• Medicaid was started in 1965 along with Medicare when it was signed into law by President Lyndon B. Johnson. As of 2009, more than 93 million people were covered under both of these programs, according to the U.S. Census Bureau. The Medicaid program is a federal-state joint venture. Each state runs its own programs within the guidelines set by the federal government. State aren't required to participate in the Medicaid program, but they must cover all eligible residents if they decide to do so.

What It Covers

• Medicaid covers numerous medical services that are needed by the diverse nature of its members. These services include inpatient and outpatient services, family planning, laboratory and X-ray fees, preventive services for individuals under 21 years of age, and physician, midwife and certified nurse practitioner services. Medicaid also covers dental services and nursing home and home health-care services. States have the authority to cover additional services under their programs as well.

Eligibility

• All U.S. citizens are entitled to join Medicare if they meet the requirements set by the health care programs. Typically applicants must have incomes that don't exceed program limits. Elderly people are eligible to apply, as well as those who are disabled or have certain medical conditions such as being pregnant. However, states have the authority to change their eligibility requirements as needed.

Costs

• The federal government helps with the costs of running Medicaid programs across the country by making matching contributions. Medical assistance matching rates must be more than 50 percent but no more than 83 percent. Matching amounts are based on a formula calculating the states' per-capita income relative to the national average. Administrative costs can be matched up to 100 percent by the federal government.