ABSTRACT
This chapter examines in more detail some of the key facts about the Medicaid program. The establishment of Medicare and Medicaid in 1965 was the result of a lengthy debate during the early part of the twentieth century over the role of the federal government in financing healthcare. The primary objective of Medicaid when it was created in 1965 was to provide a limited number of poor individuals with financial assistance to meet their medical needs. The Medicaid program was created as a partnership between federal and state governments to improve access and quality of healthcare for the poor. The Centers for Medicare and Medicaid Services issues program guidelines in the form of letters to state Medicaid directors and state health officials. Medicaid is an excellent example of how the federal structure of government shapes the dynamics of policymaking and implementation. The Medicaid program is jointly financed by the federal and state governments.
