Medical Assistance Programs: Medicaid

Medicaid is an assistance program funded by money from federal and state taxes which pays medical bills for eligible people. Medicaid is a federal/state partnership, inasmuch as each state designs its own Medicaid Program within federal guidelines. The Medicaid Program varies from state to state. What services are generally paid for by Medicaid? Medicaid pays for at least the following services:

  1. Inpatient hospital care.
  2. Outpatient hospital services.
  3. Other laboratory and X-ray services
  4. Skilled nursing facility services
  5. Physicians’ services
  6. Screening, diagnosis and treatment of children under age 21
  7. Home health care services
  8. Family planning services.

In many states, Medicaid pays for such additional services as:

  1. Dental care
  2. Prescribed drugs
  3. Eye glasses
  4. Clinical services
  5. Intermediate care facility services
  6. Other diagnostic, screening, preventative and rehabilitative services.

Who pays for the cost of Medicaid?

Medicaid is financed by federal and state government. The federal government contributes from 50 percent to the richest states to 78 percent to the state with the lowest per capita income of medical care costs, for needy and low-income people who are aged, blind, disabled, under age 21, or members of families with dependent children. The states pay the remainder, often with help from local government.

What expenses are normally excluded from Medicaid?

Excluded from Medicaid coverage are those expenses customarily paid for by Medicare.