Final answer:
States must cover the blind, disabled, and children under 18 from low-income families to receive federal Medicaid funding. States have leeway in setting their eligibility standards, leading to a diversity in Medicaid implementation. Medicaid plays a substantial role in financing nursing home care for the elderly.
Step-by-step explanation:
To receive federal funding, states must cover certain "mandatory" populations for Medicaid. These mandatory populations include the blind, the disabled, and children under the age of 18 whose family's income is below the poverty level (covered under the Children's Health Insurance Program). Each state, however, has the authority to set its own eligibility standards for Medicaid, which can lead to significant variations in who is eligible for Medicaid across different states. Despite these variations, Medicaid is a significant contributor to nursing home care costs, paying for approximately two-thirds of these costs nationally. Created jointly by the federal and state governments in 1965, Medicaid aims to provide medical insurance for low-income populations, with a particular focus on families with children, the elderly, and individuals with disabilities. While the federal government funds roughly half of the Medicaid costs, each state is responsible for the remaining costs and the administration of benefits and eligibility requirements, which leads to diversity in the program's implementation across states.