What is Medicaid ? Medicaid is a federal program designed to ensure medical assistance for people of low income and resources, whether they be dependent children or needy elderly. People with little resources need the social welfare benefits Medicaid provides so they can receive medicine.

But don’t think because one is poor that all poor people qualify for Medicaid or get quality service. Indeed, some 60 percent of poor Americans do not have the program. Medicaid can only cover so many people and with the aging population, the bulk of the coverage goes to nursing home care. Medicaid eligibility standards do vary depending on location. And one has to remember, you don’t buy Medicaid in the way one would buy life insurance, for example.

Medicaid was enacted in 1965 as part of the Social Security Act . It’s different from Medicare in that its focus is mainly poorer people whereas Medicare focuses on the aged, regardless of affluence or poverty. The focus with Medicaid is that it is a social welfare program and Medicare is a social entitlement program. One has to fill out an application for Medicaid. Also Medicaid is different depending on state , whereas Medicare is a federally-structured program.

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