Medicaid Medicaid was authorized by Title XIX of the Social Security Act in 1965 as a jointly funded cooperative venture between the Federal and State governments to assist States in the provision of adequate medical care to eligible needy persons. Within broad Federal guidelines, each of the States establishes its own eligibility standards; determines the type, amount, duration, and scope of services; sets the rate of payment for services; and administers its own program.
Medicaid is the largest program providing medical and health-related
services to America's poorest people. However, Medicaid does not provide
medical assistance for all poor persons. Under the broadest provisions of
the Federal statute, Medicaid does not provide health care services even
for very poor childless persons unless they are disabled.
Except as noted, all States must provide Medicaid coverage to: States also have the option of providing Medicaid coverage for other "categorically related" groups. Medicaid operates as a vendor payment program. States may pay health care providers directly on a fee-for-service basis, or States may pay for Medicaid services through various prepayment arrangements, such as health maintenance organizations (HMOs) or other forms of managed care. Within Federally imposed upper limits and specific restrictions, each State for the most part has broad discretion in determining the payment methodology and payment rate for services. Thus, the Medicaid program varies considerably from State to State, as well as within each State over time. SOURCE: Health, United States Related
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This page last reviewed
September 10, 2008
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