Medicaid

Abstract

Medicaid is a joint state and federal program that provides health insurance coverage to 75 million people living in or near the federal poverty level. Many of the people that Medicaid covers have chronic illnesses or disabilities. Since the program was created in 1965, Medicaid has changed to extend coverage to more people, increase the array of covered services, and address concerns about costs. Medicaid’s delivery system has also changed as many enrollees receive care through different types of managed care. Being a program that is jointly financed and administered by states and the federal government, states have flexibility and often use waivers to meet the needs of Medicaid enrollees, reduce unnecessary expenditures, or to test new models of care. Medicaid is a critical safety net that has helped millions of people in the United States obtain comprehensive health services with limited cost sharing. It has improved health outcomes while addressing some health disparities.