Medicaid is best described as which type of health insurance?

• A. Private employer-based plan
• B. State-run, government medical insurance for people of lower income
• C. Insurance for people over 65
• D. Supplemental private plan

Answer: (B)

Medicaid is a joint federal–state government program that provides health coverage to people with limited income and resources. It’s run by each state within federal guidelines and funded by both the federal government and the state governments. This makes it different from private employer-sponsored plans, which are funded and offered by employers, and from Medicare, which primarily covers people aged 65 and older (and some younger individuals with certain disabilities). Medicaid targets low-income individuals and families, offering essential services that can include hospital care, physician visits, and sometimes long-term care, with specific benefits and eligibility rules varying by state.