Medicaid is a joint federal and state program that provides health coverage to millions of Americans, including low-income adults, children, pregnant women, elderly adults, and people with disabilities. Unlike Medicare, which is based on age or disability, Medicaid is need-based and funded by both the federal government and states. The federal government matches state spending based on a formula called the Federal Medical Assistance Percentage (FMAP).
Key groups covered by Medicaid include:
- Children and families with low incomes
- Pregnant women
- Individuals with disabilities
- Seniors who need long-term care
- Adults in states that expanded Medicaid under the Affordable Care Act
Medicaid is crucial during life events such as job loss, pregnancy, disability onset, and aging. It covers a wide range of services, including doctor visits, hospital stays, long-term care, and preventive care. Understanding the difference between Medicaid and Medicare is simple: Medicaid is based on financial need, while Medicare is based on age or certain disabilities.