Which statement best describes Medicaid according to the material?

• A. It is a private plan for the elderly.
• B. It is funded entirely by the federal government.
• C. It is funded by the federal government partially and managed and co-financed by the states.
• D. It provides coverage only for dental services.

Answer: (C)

Medicaid is a joint federal–state program that provides health coverage to people with limited income. The federal government supplies funds through a matching mechanism, but states administer the program and share in the costs, with the federal share (FMAP) varying by state. This makes Medicaid neither entirely federally funded nor a private plan for the elderly. It also isn’t limited to dental services. The key idea is that financing comes from the federal government in part, and the states manage and co-finance the program.