Which statement about Medicaid is true?

Which statement about Medicaid is true?

• A. Is financed by payroll taxes
• B. Covers only elderly
• C. Is for employer-sponsored insurance costs
• D. Provides low income individuals and families with benefits; federally funded

Answer: (D)

Medicaid is a joint federal–state program that provides health coverage to people with low income and limited resources. The funding comes from both levels of government: the federal government provides matching funds to states, and states contribute funds as well. This arrangement means Medicaid isn’t financed by payroll taxes (that’s more like Social Security/Medicare) and isn’t restricted to only the elderly or to paying for employer-sponsored insurance. The statement that Medicaid provides benefits to low-income individuals and families and is federally funded best captures how the program serves eligible people and how its money is sourced.

Medicaid is a joint federal–state program that provides health coverage to people with low income and limited resources. The funding comes from both levels of government: the federal government provides matching funds to states, and states contribute funds as well. This arrangement means Medicaid isn’t financed by payroll taxes (that’s more like Social Security/Medicare) and isn’t restricted to only the elderly or to paying for employer-sponsored insurance. The statement that Medicaid provides benefits to low-income individuals and families and is federally funded best captures how the program serves eligible people and how its money is sourced.