Who funds Medicaid?

Medicaid is a public assistance program that provides health coverage primarily to low-income individuals and families. The funding structure of Medicaid involves both federal and state governments, making the answer that indicates funding from both sectors correct. The federal government provides a significant portion of the financing, typically covering a more substantial share of program costs in poorer states through matching funds. This federal-state partnership enables states to administer the program according to their specific needs while receiving essential financial support.

For example, states have the flexibility to establish their own eligibility criteria, benefits packages, and administration methods as long as they comply with federal guidelines. This allows for variations in how Medicaid is implemented across different states, but the shared funding structure ensures that both levels of government are invested in the program's success. Consequently, the answer indicating that Medicaid is funded by both federally and state governments accurately reflects the complexities of its financing.