ABSTRACT
Three major characteristics of the new legislation should be stressed. First, this was not a sweeping program of assistance to all those who were poor, even within a state. Second, the definition of medical services and the amount of each type to be provided to those eligible was not standardized from state to state. Finally, the decision as to what "income and resources" ought to be included in determining eligibility for services within the various categories was left up to each state. In addition, the states were required to establish or designate state authorities responsible for establishing and maintaining standards for private or public institutions in which the recipients of Medicaid would receive care. The inclusion of skilled nursing-home services in both Medicare and Medicaid suggested, however, that another acceptable method of reimbursement would be for Medicaid to follow the Medicare formula of "reasonable cost," with respect to nursing homes.
