Indiana State Life and Health Insurance Practice Exam

Which statement about Medicaid is true?

1. Funded solely by state governments

2. Intended for individuals age 65 and older

3. Provides disability income benefits

4. Funded by both state and federal governments

The correct answer is: Funded by both state and federal governments

The correct answer indicates that Medicaid is funded by both state and federal governments. Medicaid is a joint federal and state program designed to provide health coverage to eligible low-income individuals, including children, families, the elderly, and individuals with disabilities. The federal government establishes certain minimum standards and provides funding to assist states, but each state administers its own Medicaid program, including determining eligibility, the scope of services covered, and the reimbursement rates. This structure makes the program flexible and responsive to the needs of each state while ensuring that essential healthcare services are accessible to vulnerable populations across the nation. Funding from both levels of government is crucial in sustaining Medicaid's extensive reach and efficacy in providing necessary health services. The other statements are inaccurate in different ways. Medicaid is not solely funded by state governments but is a collaborative effort, and it certainly serves a wider demographic, not just those aged 65 and older. Furthermore, while Medicaid does provide health coverage to individuals with disabilities, it does not specifically offer disability income benefits; that function is typically served by other programs like Social Security Disability Insurance (SSDI).