What is the primary source of funding for Medicaid?

The primary source of funding for Medicaid is indeed a combination of both state and federal governments. Medicaid is a state-managed program that provides health coverage to low-income individuals, and it receives matching funds from the federal government. This partnership means that the federal government provides a significant portion of the funding based on the state's expenditures for Medicaid services. The federal contribution varies by state, which is determined by the state's per capita income, ensuring that states with lower incomes receive a higher federal match.

Because of this collaborative approach, states have some flexibility in how they administer the program and design their benefits, but they must comply with federal standards to receive the federal funding. This symbiotic relationship is crucial for Medicaid’s financial sustainability and for meeting the health care needs of vulnerable populations.