Medicaid: Medicaid (also called Medical in California) is a medical assistance program for certain individuals and families with low incomes and assets (resources). It is operated by the states, but the states receive part of their funds from the federal government. Medicaid payments are made directly to participating service providers. To participate provides must accept the Medicaid payment as payment in full. With certain exceptions, stated below, the in sured pays no medical costs. With few exceptions, eligible people must be poor or medically needy, and must be one of the following; under age twenty-one; age sixty-five or over; blind; disabled; or in certain AFDC (Aid to families with dependent children) type families. In 1989 the Medicaid program served about twenty-four million people. The numbers of people served by category were 10,318,000 dependent children under age twenty-one; 5,717,000 adults in families with dependent children; 3,496,000 permanently and totally disabled; 3,132,000 aged sixty-five or older; 95,000 blind; 1,175,000 special groups. Eligibility Under broad federal guidelines, each state has much room to establish its own eligibility requirements; to specify the range, duration, and amount of services covered; to determine the amount of reimbursement for each covered service; and to run its own program. States are legally required to cover categorically needy people, that is, people receiving AFDC (Aid to families with Dependent Children) or SSI (Supplemental security income). In addition to the categorically needy, states may choose to cover the medically needy, that is, aged, blind, disabled individuals, or members of families with dependent children, who have too much income to be eligible for cash assistance but not enough for medical care.
Categorically Neddy States are required to offer coverage to most recipients of federally assisted income-maintenance assistance payments, and to related groups that do not receive cash payments..............