Medicaid covers over 83 million low-income Americans, primarily children, pregnant women, elderly adults, and people with disabilities. Nearly half of all beneficiaries are children under 19, while 6 in 10 are people of color. It acts as a critical safety net, financing 40% of U.S. births and covering 5 in 8 nursing home residents.
Medicaid is a joint federal and state program that, together with the Children's Health Insurance Program (CHIP), provides health coverage to over 77.9 million Americans, including children, pregnant women, parents, seniors, and individuals with disabilities.
These FMAPs are determined by a formula set in statute and are for services used by people eligible through traditional Medicaid, which includes individuals who are eligible as children, low-income parents, because of disability, or because of age (65+).
Overview of Medicaid Financing
The federal medical assistance percentage (FMAP) governs most federal funding for states and takes into account a state's per capita income. For 2025, the FMAP ranges from a minimum of 50 percent in wealthier states such as California to 77 percent in Mississippi.
Medicaid provides health coverage for millions of low-income Americans, including children, pregnant women, parents, seniors, and people with disabilities, though specific eligibility depends on your state's rules regarding income, household size, age, and disability status. Federal guidelines require coverage for certain groups, but states can expand coverage for other low-income adults, so requirements vary significantly by location.
Medicaid provides health care coverage to one in five Americans — more than 70 million people — including 40% of all children and 60% of all nursing home residents. The federal and state governments jointly finance Medicaid.
It is funded jointly by the federal government and the states. Within federal guidelines, each state has considerable flexibility in how it operates its own Medicaid program. Eligibility and covered benefits vary substantially by state.
Although the Centers for Medicare & Medicaid Services (CMS) is responsible for Medicaid program administration at the federal level, individual state Medicaid agencies establish many policies and manage their own programs on a day-to-day basis.
For example, polling by the Kaiser Family Foundation highlights persistent ideological divides in how Americans perceive Medicaid. While a majority of Democrats (79%) and Independents (60%) view Medicaid primarily as a health insurance program, most Republicans (54%) see it as a government welfare program [8].
Medicaid is administered by the states within federal guidelines; as such, each Medicaid program is different reflecting state choices over who is eligible and what benefits are covered. If a state chooses to participate in Medicaid, federal rules ensure a “mandatory” level of coverage.
The most people receiving Medicaid are low-income children, adults, seniors, and individuals with disabilities, with significant enrollment among women and racial/ethnic minorities, while the largest spending goes towards seniors and those with disabilities due to high long-term care needs, and states like California, New Mexico, and Louisiana have high enrollment percentages.
Follows are the most common reasons for denial.
25 States With the Best Medicaid Benefits
The remaining 8% of Medicaid adults reported that they are retired, unable to find work, or were not working for another reason.
Eligibility rules differ between states. In states that have expanded Medicaid coverage: You can qualify based on your income alone. If your household income is below 133% of the federal poverty level (FPL), you qualify.
The most common reason an applicant is denied Medicaid is income or assets above the eligibility criteria. In most states in 2026, an applicant's monthly income must be less than $2,982/month, and their assets (including money in bank accounts) must be less than $2,000.
Medicaid verifies an applicant's income by checking regular deposits and sources of funds. They also verify their addresses to comply with residency requirements. Moreover, bank statements help prevent Medicaid fraud.