DEFINITION: Medicaid is a health insurance program for low-income individuals and those with disabilities. Elderly low-income people are eligible for both Medicare and Medicaid. (Medicaid covers long-term care, so it can be used to fund nursing home stays for people who are eligible.)
One of the provisions of the ACA was to expand Medicaid to cover additional low-income individuals and families, including childless adults. The federal government funds at least 90 percent of coverage for new enrollees in states that have opted to expand their Medicaid programs. The Supreme Court ruled that states could decide whether or not to expand Medicaid, so not all states are expanding their programs.
Medicaid is funded in part by the government and by the state where the enrollee lives. Learn more about Medicare benefits and eligibility.