Final answer:
Medicaid is a federal-state program that provides medical insurance to individuals with low income and disabilities, operational since 1965. It aims to help people near or below the poverty line and address the poverty trap by offering essential health coverage.
Step-by-step explanation:
The medical assistance program created to provide coverage to individuals with a low income and those with disabilities is Medicaid. Introduced as part of Lyndon B. Johnson's Great Society in 1965, Medicaid operates as a federal-state joint program, offering medical insurance to the low-income elderly, low-income families with children, and people with disabilities. Each state administers Medicaid individually, which leads to variations in coverage and eligibility requirements across the United States.
By design, Medicaid caters to those near or below the poverty line, seeking to alleviate the hardships associated with the poverty trap, where increased earnings can result in a disproportionate loss of government benefits. Despite differences in state-level administration, Medicaid maintains the goal of providing a essential level of medical insurance to those in need, with a significant portion of funding supporting mothers with low income and the elderly in need of nursing home care.