What is a primary characteristic of Medicaid?

A primary characteristic of Medicaid is that it serves as a last resort payor. This means that Medicaid is designed to provide coverage to individuals and families who have exhausted other resources and are unable to afford necessary medical care. It steps in to cover medical expenses for those who meet specific eligibility criteria, including income and asset levels.

This aspect of Medicaid is crucial, as it plays a significant role in supporting vulnerable populations, including low-income individuals and families, children, elderly, and disabled individuals. By functioning as a last resort, Medicaid ensures that those most in need have access to healthcare services even when other payment sources are unavailable.

Other options, while related to aspects of Medicaid, do not capture its defining feature. For instance, federal funding is important but not unique to Medicaid, as many programs rely on federal funds. Coverage for all seniors is inaccurate, as Medicaid does not provide universal coverage for seniors but rather has specific eligibility requirements. Mandatory enrollment is also not a characteristic of Medicaid, given that participation is based on eligibility rather than a requirement for all individuals.