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Recession information: Basics of Medicaid
Given the ongoing recession, we thought many may want/need to gain a better
understanding of general government benefits programs, such as Social Security, Medicare,
and Medicaid. This article provides a very basic understanding of Medicaid:
Established by the Social Security Act of 1965, Medicaid is a social safety net program for
eligible individuals and families with low incomes and resources as well as low-income
parents, children, seniors, and people with disabilities. Medicaid is funded by the states and
federal government, and is managed by the states. Each state may have its own name for
the program (e.g., TennCare, Medi-Cal, and MassHealth). Some states use private
companies to administer portions of the Medicaid benefits, which is sometimes referred to
as Medicaid managed care.
While Medicare focuses mostly on the elderly, Medicaid is focused on low income
households to pay for some or all parts of their medical expenses. And while Medicare is
solely a federal program, Medicaid is a joint program between the federal government and
states. Each state has its own Medicaid system, which must abide by the federal guidelines
to be eligible for matching federal funds.
In order to be eligible for Medicaid, the person must be a U.S. citizen or lawfully admitted
immigrant and of low income. However, Medicaid does not provide medical assistance for
all poor individuals. Rather, individuals must meet certain requirements in terms of age,
pregnancy, disability, blindness, income and resources, and one's status as a U.S. citizen or
a lawfully admitted immigrant to be eligible for the program.
Due to the ongoing recession, Medicaid funding has become a budgetary issue for many
states. And the problems are likely to continue so long as the recession lasts and in all
likelihood even a few years after the recession. At the moment, on average, the Federal
Government pays a little more than half of Medicaid expenses.
One of the major recent changes in Medicaid is that the federal government now allows
states to charge premiums and higher co-payments to Medicaid participants. This rule,
which according to many is a product of the ongoing recession and states' budgetary
issues, was passed in November 2008 and is meant to limit states’ financial losses
associated with the program. Estimates show that states will save $1.1 billion while the
federal government will save nearly $1.4 billion as a result of these changes.
Given that Medicaid is considered a social insurance or social welfare program, it is subject
of many controversies. Economists, social scientists, as well as policy makers and
politicians often have strong views either in favor or against the program and as a result the
program has gone through various changes and amendments over the years.
For more information, contact you state Medicaid program.
Given the ongoing recession, we thought many may want/need to gain a better
understanding of general government benefits programs, such as Social Security, Medicare,
and Medicaid. This article provides a very basic understanding of Medicaid:
Established by the Social Security Act of 1965, Medicaid is a social safety net program for
eligible individuals and families with low incomes and resources as well as low-income
parents, children, seniors, and people with disabilities. Medicaid is funded by the states and
federal government, and is managed by the states. Each state may have its own name for
the program (e.g., TennCare, Medi-Cal, and MassHealth). Some states use private
companies to administer portions of the Medicaid benefits, which is sometimes referred to
as Medicaid managed care.
While Medicare focuses mostly on the elderly, Medicaid is focused on low income
households to pay for some or all parts of their medical expenses. And while Medicare is
solely a federal program, Medicaid is a joint program between the federal government and
states. Each state has its own Medicaid system, which must abide by the federal guidelines
to be eligible for matching federal funds.
In order to be eligible for Medicaid, the person must be a U.S. citizen or lawfully admitted
immigrant and of low income. However, Medicaid does not provide medical assistance for
all poor individuals. Rather, individuals must meet certain requirements in terms of age,
pregnancy, disability, blindness, income and resources, and one's status as a U.S. citizen or
a lawfully admitted immigrant to be eligible for the program.
Due to the ongoing recession, Medicaid funding has become a budgetary issue for many
states. And the problems are likely to continue so long as the recession lasts and in all
likelihood even a few years after the recession. At the moment, on average, the Federal
Government pays a little more than half of Medicaid expenses.
One of the major recent changes in Medicaid is that the federal government now allows
states to charge premiums and higher co-payments to Medicaid participants. This rule,
which according to many is a product of the ongoing recession and states' budgetary
issues, was passed in November 2008 and is meant to limit states’ financial losses
associated with the program. Estimates show that states will save $1.1 billion while the
federal government will save nearly $1.4 billion as a result of these changes.
Given that Medicaid is considered a social insurance or social welfare program, it is subject
of many controversies. Economists, social scientists, as well as policy makers and
politicians often have strong views either in favor or against the program and as a result the
program has gone through various changes and amendments over the years.
For more information, contact you state Medicaid program.
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