Medicaid Health Insurance Medicaid was created in 1965 and is a type of health insurance program for those with limited incomes. The U.S. federal government as well as each state contributes to Medicaid’s funding. Generally, low-income individuals, families, seniors, and those with disabilities will qualify for Medicaid. Each individual state administers and monitors its own Medicaid health insurance program. Lastly, Medicaid covers a wider spectrum of health services than Medicare.

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