Medicaid: An Essential Program for States and Their Residents

Medicaid is a health insurance program that serves low-income Americans, including children, seniors, and people with disabilities. It is jointly funded by states and the federal government. Federal Medicaid funding is a reliable, vital source of financial support for states, which is why making even minor changes to Medicaid’s financing structure would leave states with large budget holes.

This fact sheet (PDF) explains that:

• Medicaid’s funding structure protects states and allows them to develop innovative program designs.
• States have the flexibility to design Medicaid programs that work for their particular residents.
• Medicaid is critical to state budgets.
• Medicaid dollars are spent efficiently.