Question

Problem 1. Medicaid is a means-tested public health insurance program for certain low- income individuals, and is the largest health insurance program in the U.S. byenrollment.

a. What is a “means-tested” program? Is there any asset test for general Medicaid coverage? List another means-tested social assistance program.

b. Medicaid per capita cost varies greatly across states. What could explain such geographic variation?

Answer 1

a. Means-tested programs are those programs which provide cash and noncash benefits and are restricted to families or individuals whose income falls below defined levels and who meet certain other eligibility criteria established for each program.

other means-tested social assistance programs are food stamps, TANF, SCHIP, Childcare, and development fund.

In addition to income tests, programs impose different limits on the assets that an individual or family may hold in order to receive benefits. Asset tests are further complicated because of the difference in how the equity in vehicles is treated when determining the assets.