Medicaid is funded by state governments and by:

Medicaid is a joint federal and state program that provides health coverage to eligible low-income individuals and families. The federal government plays a crucial role in financing Medicaid by providing matching funds to states, which helps cover the costs of the services provided to beneficiaries. This shared funding arrangement allows states to expand their Medicaid programs according to their specific needs while still receiving significant financial support from the federal government.

Understanding this funding structure is essential because it directly influences how Medicaid is administered and the services available to recipients. States have flexibility in designing their programs, but they must comply with federal guidelines to receive the federal match. This collaboration ensures access to healthcare for vulnerable populations, which is a fundamental goal of the Medicaid program.