What is the main purpose of Medicaid?

• A. Maximize hospital revenues
• B. Increase access to care and promote health equity
• C. Fund private health plans
• D. Limit patient access

Answer: (B)

Medicaid is designed to remove financial barriers to health care for people with low income and other eligible groups, so they can access needed services and services are affordable. By providing health coverage and paying for a wide range of medically necessary care, it expands access to primary and preventive care, reduces out-of-pocket costs, and supports care coordination. This focus on enabling access and addressing disparities among vulnerable populations is what promotes health equity.

Remember, Medicaid is a joint federal-state program administered by states; it aims to cover eligible individuals (such as low-income children, pregnant people, disabled, and elderly) and help ensure they can obtain essential services like doctor visits, hospital care, and long-term supports. While some arrangements involve private managed care plans, the overarching goal is improving access and outcomes, not maximizing hospital revenue or limiting access.