Download Locations:
Summary:
Medicaid is a health insurance program jointly funded by the states and the federal government. Generally, eligibility is limited to low-income children, pregnant women, parents of dependent children, people with disabilities, and the elderly. Each state designs and administers its own program within broad federal guidelines. The federal government shares in a state's Medicaid costs by means of a statutory formula based on a state's per capita income, adjusted annually. The federal medical assistance percentage (FMAP) is the percentage of Medicaid benefit costs paid for by the federal government. FMAPs must not fall below 50% and may not exceed 83%. Overall, during FY2001 and FY2002, the federal government financed about 57% of all Medicaid costs. Federal payments for health care services and administration of the Medicaid program totaled $130 billion in FY2001, 11.1% higher than in FY2000. Combined state and federal spending for Medicaid totaled $228 billion in FY2001, a 10.7% increase over FY2000. Federal payments for health care services and administration of the Medicaid program totaled $146 billion in FY2002, 12.9% higher than in FY2001. Combined state and federal spending for Medicaid totaled $258 billion in FY2002, a 13.2% increase over FY2001. This report will be updated when new data are available. Medicaid is a health insurance program jointly funded by the states and the federal government. Eligibility requirements are set by the states within federal guidelines including age, income, resources, family structure, and disability. Generally, eligibility is limited to certain categories or groups of individuals; namely, low-income children, pregnant women, parents of dependent children, people with disabilities, and the elderly. Within federal guidelines, each state also designs and administers its own program. The federal government shares in a state's Medicaid service costs through a variable matching formula. After a state pays for a Medicaid-covered service, it makes a claim for the federal share of the payment and is reimbursed at the federal matching rate for that state. The federal matching rate for the cost of services provided to Medicaid beneficiaries, known as the federal medical assistance percentage (FMAP), is inversely Congressional Research Service ~ The Library of Congress
