Medicaid was created in 1965 as a joint federal-state health insurance program for low-income Americans. It is the largest source of public funding for health care in the United States. Medicaid is jointly funded by the federal government and the states, but it is administered by the states. Each state has its own Medicaid program, which is overseen by the Centers for Medicare and Medicaid Services (CMS), a division of the U.S. Department of Health and Human Services (HHS).Medicaid is a means-tested program, which means that eligibility for coverage is based on household income and assets. In general, Medicaid covers low-income adults, children, pregnant women, people with disabilities, and the elderly. Medicaid also covers some long-term care expenses, such as nursing home care.Medicaid is an important source of health coverage for low-income Americans. In 2015, Medicaid provided health coverage to nearly 74 million people. about one in five Americans. Medicaid is the largest source of public funding for health care in the United States. In 2016, Medicaid accounted for about 16 percent of all spending on health care in the United States. Medicaid is a joint federal-state program, which means that the federal government and the states share the cost of the program. The federal government pays for about 60 percent of Medicaid costs, while the states pay for the remaining 40 percent.Each state has its own Medicaid program, which is overseen by the Centers for Medicare and Medicaid Services (CMS), a division of the U.S. Department of Health and Human Services (HHS). States have considerable flexibility in designing their Medicaid programs, within certain federal guidelines. As a result, there is considerable variation among the Medicaid programs of different states.