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Medicaid: A Primer

What Is Medicaid?

1. Medicaid is the country's publicly financed health and long-term care coverage program for low-income people.

A. True

B. False


2. Which of the following statements is true?

A. Medicaid was initially established to provide medical assistance to individuals and families receiving cash assistance, also known as “welfare.”

B. Over the years, Congress has incrementally expanded Medicaid eligibility to reach more Americans living below or near poverty, regardless of their welfare eligibility.

C. Today, Medicaid covers a broad low-income population, including parents and children in both working and jobless families, individuals with diverse physical and mental conditions and disabilities, and seniors.

D. All of the above

E. B and C above


3. It is estimated that for every one percentage point increase in the unemployment rate, Medicaid enrollment grows by _________ people.

A. 1 million

B. 3 million

C. 5 million


4. Medicaid is funded by both the states and the federal government. It is administered by:

A. The federal government

B. The states

C. A joint state and federal commission


Who Is Covered by Medicaid?

5. Federal law requires states to cover certain “mandatory” groups in order to receive any federal matching funds. These "mandatory" groups include:

A. Pregnant women and children under age 6 with family income below 133% FPL

B. Children age 6 to 18 below 100% FPL

C. Parents below states’ July 1996 welfare eligibility levels

D. Most elderly and persons with disabilities who receive Supplemental Security Income (SSI)

E. All of the above


6. Only American citizens and specific categories of lawfully residing immigrants can qualify for Medicaid

A. True

B. False


7. States can expand Medicaid eligibility beyond federal minimum standards to cover additional “optional” groups. Which group is not one designated as "optional".

A. Pregnant women, children, and parents with income exceeding the mandatory thresholds

B. Elderly and disabled individuals up to 100% FPL

C. Working disabled individuals up to 250% FPL

D. Children of individuals who entered the US illegally


8. Low‐income adults today are much more likely than low income children to be uninsured.

A. True

B. False


What Services Does Medicaid Cover?

9. State Medicaid programs must cover “mandatory services” specified in federal law in order to receive any federal matching funds. Which of the following is NOT a mandatory service?

A. Physicians’ services

B. Hospital services (inpatient and outpatient)

C. Laboratory and x-ray services

D. Federally-qualified health center and rural health clinic services

E. Nursing facility services for individuals under age 21


10. States are also permitted to cover many important services that federal law designates as “optional,” such as nursing facility services for individuals under age 21.

A. True

B. False


11. Some of the many long term care services Medicaid provides are:

A. Comprehensive services provided in nursing homes and intermediate care facilities for the mentally retarded

B. Home health care

C. Medical equipment

D. All of the above

E. B and C above


12. States have flexibility to define the amount, duration, and scope of the Medicaid services they cover, but federal law requires that coverage of each mandatory and optional service be ___________.

A. "within the state's budgeted Medicaid capacity"

B. "sufficient based on definitions established by healthcare providers"

C. “sufficient in amount, duration, and scope to reasonably achieve its purpose”


How Much Does Medicaid Cost?

13. In 2008, total federal and state Medicaid spending on services was nearly ______.

A. $339 billion

B. $114 billion

C. $412 billion


14. Which of the following statements is true?

A. Children, parents, and pregnant women make up three‐quarters of the Medicaid population

B. Children, parents, and pregnant women account for only about a third (32%) of Medicaid spending

C. Elderly and disabled individuals make up one quarter of the Medicaid population but account for roughly two‐thirds of spending

D. All of the above

E. A and B above


How Is Medicaid Financed?

15. Economic research shows that state Medicaid spending has a “multiplier effect”, that is, the money injected into the state economy through the program generates successive rounds of earning and purchasing by businesses and residents.

A. True

B. False


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