ABSTRACT
Introduction Medicaid is a program funded at both state and federal levels that is intended to provide health coverage to those families with low incomes. Created as a part of the Social Security Act of 1965, the Medicaid program is administered by each state, but the Centers for Medicare and Medicaid Services (CMS) has established the requirements for eligibility and funding. A signi“cant difference between Medicare and Medicaid is that Medicare is solely funded at the federal level, whereas individual states are responsible for a substantial portion of Medicaid funding. Medicaid is basically a social welfare program in which eligibility is largely based on income. States are often required to cover certain mandatory groups and are given the option to cover other populations. In contrast, Medicare eligibility is based on national guidelines; Medicaid rules vary from state to state. California employs a system known as Medi-Cal, while Tennessee has a program called TennCare. Even though states administer these programs, they must conform to federal guidelines to receive matching funds from the federal government. Some states receive matching federal government payments at levels as high as 3:1 or even 4:1; this ratio is primarily driven by the income of the residents in that particular state.
