Medicaid
A federal-state health insurance program for low-income individuals, families, and certain disabled populations.
What is Medicaid?
Medicaid is a government-funded health insurance program jointly administered by the federal government and individual states, providing coverage to eligible low-income adults, children, pregnant women, elderly individuals, and people with disabilities. Created in 1965 alongside Medicare, Medicaid is means-tested — eligibility depends on income and, in some states, other criteria. The Affordable Care Act (ACA) expanded Medicaid eligibility to adults with incomes up to 138% of the federal poverty level, though expansion is optional for states; as of 2024, most states have adopted the expansion. Medicaid covers a comprehensive set of benefits including hospital care, physician services, long-term care, and preventive services, typically with little or no cost-sharing for beneficiaries. Unlike Medicare, Medicaid has no age requirement and is funded jointly by federal matching payments and state budgets.
Example
In a state that adopted ACA Medicaid expansion, a single adult earning $20,000 per year (below 138% FPL) qualifies for Medicaid and pays no premiums or deductibles. A comparable adult in a non-expansion state at the same income may fall into the 'coverage gap' — earning too much for traditional Medicaid but too little to qualify for ACA marketplace subsidies.
Source: CMS — Medicaid