Who funds and administers Medicaid benefits?

Medicaid is a program that provides healthcare coverage for eligible low-income individuals and families, and its funding and administration are structured in a specific way. The correct answer highlights that Medicaid is primarily a federally funded program which is then administered at the state level.

The federal government provides a significant portion of the funding for Medicaid, which varies by state through Federal Medical Assistance Percentages (FMAP). States are responsible for the management and administration of their Medicaid programs, meaning they determine eligibility, set the benefits, and establish payment rates within federal guidelines. This structure allows states some flexibility to cater the services to their specific populations while being supported by federal funds.

Other answers outline different funding sources or structures that do not accurately reflect how Medicaid operates. For example, Medicaid is not solely state-funded, nor is it primarily funded by private insurers or charitable organizations. Thus, stating that it is federally funded and administered by the states properly conveys the partnership between the federal and state governments in providing essential healthcare services to those in need.