PSI Ohio Insurance Practice Exam

Which of the following statements about Medicaid is correct?

1. It is a private insurance program.

2. It assists individuals with insufficient income to pay for medical care.

3. It provides coverage for only the elderly.

4. It is mandatory for all residents to enroll.

The correct answer is: It assists individuals with insufficient income to pay for medical care.

Medicaid serves as a vital public health insurance program designed to aid individuals and families with limited income who struggle to afford necessary medical care. This assistance is essential for those who meet specific income and resource criteria, ensuring that low-income individuals have access to comprehensive health services that they may not otherwise afford. The program is not restricted to any single demographic group; it covers a wide array of individuals, including children, pregnant women, parents, the elderly, and individuals with disabilities, further highlighting its broad scope beyond merely assisting the elderly. As a state and federal partnership, Medicaid programs may vary in design and implementation, but their primary purpose remains consistent: to provide essential health services to vulnerable populations. In contrast, the other statements mischaracterize Medicaid's role; it is not a private insurance program, nor is it mandatory for all residents to enroll, and it certainly does not cater exclusively to the elderly. Thus, the correct assertion showcases Medicaid's foundational objective of aiding those with insufficient income for medical care.