Medicaid

Abstract

Medicaid is the largest insurer in the United States and is the nation’s public health insurance program for low-income adults, children, pregnant women, the elderly, and people with disabilities. The program is a joint federal and state program in which states can design and administer their own individual program, subject to federal requirements. Medicaid benefits can vary across states, but mandatory benefits include services such as inpatient and ambulatory care services, physician services, laboratory and x-ray services, and home health services. Some optional benefits can include prescription drugs, case management, physical therapy, and occupational therapy. The program is financed jointly by the federal government and the states, and federal matching funds provide a mechanism for states to cover low-income residents and allow state Medicaid programs to respond to demographic and economic shifts and changing coverage needs. Reform of the Affordable Care Act, which expanded Medicaid, has been high on the political agenda, and it is unclear how a myriad of policy proposals will determine the future of Medicaid coverage for tens of millions of people.