The Medicaid program, a federal/state entitlement program for low-income individuals, is funded only by the individual state governments.

• A. True
• B. False
• C. Not applicable
• D. Not stated

Answer: (B)

Medicaid is financed through a partnership between the federal government and the states. The federal government provides funds to states through the Federal Medical Assistance Percentage (FMAP), which matches a portion of state Medicaid costs and varies by state based on per‑capita income. States cover the remaining costs. Because federal matching funds make up a substantial share of Medicaid financing, it is not funded only by state governments. The entitlement aspect means eligible individuals have a right to benefits, but the funding stream comes from both levels, with the federal government contributing a significant portion.