ABSTRACT
Medicaid is the nation's major public financing program for providing health care coverage to low-income families and long-term care to low-income elderly and disabled people. The Medicaid experience teaches us about meeting the health needs of the poor through a separate means-tested program, with eligibility tied to welfare, and a program design that combines federal guidelines and state flexibility. Medicaid's experience in providing medical care to the poor offers many lessons in serving needy groups. Despite the program's accomplishments, beneficiaries appear to experience barriers in obtaining some types of services and in receiving care in the most appropriate setting. Medicaid is a means-tested program for individuals who fit the welfare-based categories of assistance and meet state-determined income and assets criteria for eligibility. Medicaid acute coverage would be replaced by the new system, employer responsibility for their low-income workers and their dependents would increase, and coverage of current Medicaid beneficiaries would be shared by state governments and the new alliances.
