In January, during a congressional hearing on his way to becoming secretary of the Department of Health and Human Services, Robert F. Kennedy Jr. made some inaccurate statements about Medicaid, a program he now oversees. He incorrectly stated that Medicaid is fully funded by the federal government and that enrollees face high out-of-pocket costs, which is not the case. Medicaid is a state-federal program that provides health coverage to millions of disabled and low-income Americans, offering different services to different people in different parts of the country.
President Donald Trump promised to “love and cherish” Medicaid, but recent federal budget proposals by Republicans could potentially reduce the program. With this debate ongoing, it is important to understand the key aspects of Medicaid.
Medicaid is a government health insurance program for people with low incomes and individuals with disabilities, while Medicare generally covers those 65 or older. More than 79 million people receive services from Medicaid or the Children’s Health Insurance Program, representing about 20% of the total U.S. population. Medicaid covers a wide range of services, including routine checkups, vaccinations, hospital stays, and more.
Income qualifications for Medicaid vary by state, with the Affordable Care Act allowing more people to qualify based on income through Medicaid expansion. Currently, 40 states and the District of Columbia have opted into the expansion. The federal government pays most of the cost of Medicaid by matching a portion of what states spend, with different match rates for various services and enrollees.
Medicaid covers essential services such as emergency medical transportation, prescription drugs, mental health care, and long-term care. It also plays a crucial role in providing coverage for millions of Americans who would otherwise be uninsured. Medicaid programs can have different names within the same state, often operated by private insurance companies.
The future of Medicaid remains uncertain, with ongoing discussions about potential changes to federal funding that could impact eligibility and services. Despite these debates, Medicaid remains a popular program, with 77% of Americans viewing it favorably. The role of government in healthcare and the extent of the medical insurance safety net are central questions in the ongoing discussions about Medicaid’s future.
