Medicaid is a federal and state assistance program that pays for health care services for people who cannot afford them. Which statement about Medicaid is true?

• A. It is funded solely by the federal government.
• B. It has an average state funding match rate of 100%.
• C. It is a federal and state partnership that funds health care services for those who cannot afford them, with federal matching around 53% on average.
• D. It only covers emergency services.

Answer: (C)

Medicaid operates as a federal–state partnership, where the federal government matches a portion of what states spend on eligible health care services. The exact matching rate is determined by the FMAP and varies by state and over time, but the average falls in the low to mid-50s percentile. This means the federal share is not 100%, and states contribute a substantial portion as well. Medicaid covers a broad range of health care services beyond just emergencies, so the program is far more comprehensive than an emergency-only plan. These factors make the statement describing Medicaid as a federal–state partnership with federal matching around 53% on average the most accurate reflection.