Medicaid is a means-tested federal-state matching program that
provides medical assistance for persons who are unable to afford
needed medical and health-related services. Since the program's
establishment in 1965, it has become the largest single source of
financing- both private and public- for long-term care for those
elderly and disabled who are low-income or who have depleted their
income and assets on medical and long-term care expenses. In order
to be eligible for Medicaid, individuals must meet certain
eligibility criteria. These criteria are determined by broad
federal requirements and state decisions about whom they want to
cover under their Medicaid programs. The financial eligibility
standards that states do use are shaped in large part by estimates
of spending that will occur with these standards. The elderly and
disabled are the most expensive groups that are covered under
Medicaid, largely because Medicaid covers nursing home and other
institutional long-term care and because this care is expensive.
Medicaid eligibility rules also result in a diverse disabled
population receiving coverage. Many disabled persons become
eligible because they cannot work and are dependent on welfare
assistance from SSI. However, Medicaid provides incentives for
other disabled persons to work and retain Medicaid coverage. The
disabled population also includes children who need a broad range
of home and community based care as well as some who need nursing
home care.
General
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