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Is Medicaid an Entitlement Program?

According to Auburn University, an entitlement program is a government program in which a large number of people are legally entitled to certain financial benefits if they meet specific eligibility criteria. Unlike certain other government programs, entitlement programs are available to an unlimited number of eligible persons. Medicaid, a health insurance program for low-income people, is one of the largest entitlement programs in the United States. The other two larges programs are Social Security and Medicare.

  1. Features

    • Medicaid is a federal entitlement program whose cost is divided between the federal government and the states. According to the New York Times, the federal government pays between 50 percent and 70 percent of a state's Medicaid costs, with the state paying the rest. Each state has its own criteria for Medicaid eligibility, with the vast majority of recipients people with low incomes.

    Significance

    • Although each state has its own eligibility guidelines for Medicaid recipients, in all cases, a person has the legal right to coverage if he meets the state's requirements. For this reason, the person can be said to be entitled to Medicaid. This means that the program meets the criteria as entitlement program.

    Size

    • According to Auburn University, since the 1980s, entitlement programs have accounted for more than half of all U.S. government spending. As of 2010, more than 50 million people were covered by Medicaid. According to a report by the Department of Health and Human Services, in 2008, Medicaid costs totaled more than $344.3 billion spent by the state and federal governments combined, and was projected to grow by 8.1 percent in 2009.

    Considerations

    • According to the Journal Health Affairs, although Medicaid is an entitlement program, the wording of the bill that entitles eligible people to Medicaid is relatively weakly written. While people can be assured of receiving Medicare coverage if eligible, some court rulings have called into question the federal government's right to force states to issue Medicaid to residents. The legislation is vague about what coverage people are entitled to.

    Potential

    • Under the health care reform bill, passed in 2010, the Medicaid program will be expanded beginning in 2014. According to the health-insurance company Kaiser, low-income adults with incomes that don't exceed 133 percent of the federal poverty level will be eligible for Medicaid. According to 2010 federal poverty guidelines, this is equivalent to $14,404 for individuals and $29,326 for a family of four.

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