Final answer:
Medicaid regulations are indeed true at both state and federal levels, as the program is jointly administered by both, with the states having the flexibility to set their own eligibility and benefits levels.
Step-by-step explanation:
The statement that Medicare and Medicaid regulations occur at both state and federal levels is true. Congress created Medicaid in 1965 as a joint health insurance program involving both the states and the federal government. The federal government helps to fund Medicaid, but the individual states are responsible for its administration, which includes setting the level of benefits and eligibility requirements. This decentralized approach means that the Medicaid program can vary significantly from one state to another, as states have the freedom to tailor the program to meet their specific needs.