This 2011 report chapter presents an overview of the Medicaid program. Medicaid is a means-tested entitlement program that is jointly administered and financed by the federal government and states. It has a national framework but varies by state in terms of eligibility, benefits, and payment.
Medicaid coverage of services is more than health insurance typically provides. Medicaid covers routine standard health care services that are also covered by Medicare and employer-sponsored insurance. Medicaid also covers services not covered under Medicare or traditional health insurance; most notably long-term services and supports and certain services important to low-income seniors and persons with physical or mental disabilities, and children with special health care needs.
Medicaid coverage varies by state since benefits are a combination of federal mandatory and state optional benefits. States have applied waiver authorities to test changes in service delivery approaches and have expanded their use of managed care over the years, particularly for low-income children and their families. Today, almost 50 percent of Medicaid enrollees are enrolled in risk-based arrangements.
Medicaid spending has grown in recent decades, at times fueled by economic downturns that have compounded fiscal challenges since loss of jobs and income result in more people eligible for Medicaid. In 2011, many states face budget shortfalls elevating Medicaid policy issues. Read more about eligibility, coverage, payment, financing, and administration of the Medicaid program.
From: March 2011 Report to the Congress on Medicaid and CHIP