Medicaid: Benefits and Options

Topic: Administration
Words: 642 Pages: 2


Medicaid payment systems vary, and the differences are in the number and type of services provided, and the amount of coverage. Payment systems still need improvement, but they already hold great promise for the public. Among such programs in the U.S. is Medicaid, which allows people with limited income to pay for medical expenses. Choosing Medicaid is the key to a healthy future that provides economic benefits to the state and the public.

Characteristics of Medicaid

Medicaid began quite a long time ago after a detailed version of the Social Security Act. From that point on, states were financially empowered to manage the costs of low-income people who did not have access to commercial insurance (Norris, 2022). Medicaid spread across the U.S., expanding the boundaries of coverage. Thirty-eight states have now enacted significant Medicaid expansions on affordable health care, allowing many low-income families to be covered (Norris, 2022). U.S. citizens and aliens can fall under Medicaid protection: they should belong to low-income families (“Eligibility”). As a result, Medicaid qualifies children, teenagers, and elderly in nursing homes. There are two types: Medicaid Communities to help citizens without insurance and Medicaid Care to compensate for the care of seriously ill or older adults (Norris, 2022). A wide range of services fall under coverage: neonatal screening, psychological support, or routine services for children of all ages.

Regulation of Medicaid

Medicaid is funded through budgets allocated by the federal government. The states are involved in funding, but not to the same extent. The state regulates the Medicaid rate, and proof of assurance of services is required first (Manatt, 2019). For information support, a dedicated Medicaid regulatory system provides high operational capabilities. The system provides quarterly and monthly reports on contracts with states and the amount of money allocated to the program (“Medicaid management information system”). To obtain Medicaid, interviews and income estimates are conducted according to official financial statements. The provider offers type of coverage, depending on which population category the person falls into.

Advantages and Disadvantages of Medicaid Financing

Medicaid, like any federal program, can refinance the overall budget. It is accomplished by gradually restoring more of the population to resources. Since children occupy a predominant niche in coverage, their resources will accumulate as they grow older. There is an increase in the individual incomes of the population after Medicaid support. As a consequence, the overall budget becomes more fluid and flexible. The adoption of Medicaid expansions allows states to build up their budgets by gradually aging federal support funds (Manatt, 2019). Consequently, the benefits of Medicaid in funding health care are expressed in the ability to recoup funds and boost the economy by making the population healthier.

However, there are several disadvantages associated with Medicaid participation in financing. These relate to the difficulty of balancing the state’s budget to allocate to all types of services. It creates additional slack in the economy, especially during stress – for example, during a coronavirus pandemic (Zhu et al., 2020). The terms of Medicaid are such that they do not charge for missed appointments or absences at the annual checkup. The amount of money the program can return to the federal government through administrative costs is reduced because there is no additional oversight of program coverage (Gordon, et al., 2017). Consequently, the shortcomings of Medicaid in health care funding stem from the inability to create a balance between the budget allocated by the government and the funds reimbursed.


Thus, Medicaid options are gradually increasing, and additional legal extensions allow more and more people to receive medical care. More states are willing to support low-income populations, thereby boosting health care and the economy. Through multidirectional regulation, Medicaid succeeds in eliminating costs and supporting economic stability. At the same time, Medicaid creates the conditions for budget flexibility and population wellness but causes difficulties in determining the budget balance.


Eligibility. (n.d.). Medicaid. Web.

Gordon, S.H., Gadbois, E.A., Shield, R.R., Vivier, P. M., Ndumele, C. D., & Trivedi, A. N. (2018). Qualitative perspectives of primary care providers who treat Medicaid managed care patients. BMC Health Services Research, 18(728). Web.

Manatt. (2019). Medicaid’s impact on health care access, outcomes and state economies. Briefing Series: Key Medicaid Issues For New State Policymakers, 3. Web.

Medicaid management information system. (n.d.). Medicaid. Web.

Norris, L. (2022). A state-by-state guide to Medicaid expansion, eligibility, enrollment and benefits. Health Insurance. Web.

Zhu, J. M., Grande, D., Jones, D. K., & Tipirneni, R. (2020). Health Policy Perspective: Medicaid and State Politics Beyond COVID. Journal of general internal medicine, 35(10), 3040–3042. Web.

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