Medicaid was created to provide medical
assistance and care for the financially impoverished
elderly and certain other indigent individuals and
low income families. It is administered on the
State level and funded by both State and federal
resources. People served by Medicaid can
include the elderly, children, the disabled and low
Medicade is part of the Social Security Act
administered by each State and monitored by the U.S.
Department of Health and Human Services.
Eligibility for and services offered by Medicade can
vary from State to State. States are not
required to participate in the Medicaid program but
every State has participated since the early 1980's.
Medicaid pays for the majority of residents now in
all nursing homes and provides services to tens of
millions of Americans. It can amount to about
one quarter of each State's budget and is growing.
The U.S. Congress has recently debated legislation to
cut Medicaid funding.
Medicaid is not to be confused with Medicare which
is administered by the federal government.
Medicare covers health benefits for those over 65
years of age and covers far fewer services.
Medicare is not all inclusive healthcare, as is
Medicaid, and contains provisions for the payment of
premiums and deductibles.
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