Definition of "Medicaid"

Simply put, Medicaid is health insurance for the poor. It was created in 1965 as a joint federal/state public assistance program for those too poor to afford health care. Since the program is administered by the individual states under federal guidelines, the benefits offered and eligibility requirements vary widely. About 36 million people around the U.S., including children, the elderly, the blind and the disabled, are currently covered by Medicaid. Usually, Medicaid recipients pay no part of costs for covered medical expenses, although a co-payment is sometimes required.

This program was enacted in 1965 as part of the Social Security Act. It is a joint Federal-state program providing medical assistance to the aged, blind and disabled, and families with dependent children who cannot afford such assistance.