“Medicaid is a joint federal-state health care program, primarily for the poor. At the federal level, Medicaid is an entitlement, implying that each enrollee has a right to benefits, regardless of the state in which he or she resides. However, federal funds are not distributed equally. Each state budgets its own Medicaid spending, but receives federal funds based on a matching formula. Wealthy states that spend more on Medicaid receive more federal funds, while poor states, which tend to have larger poverty populations, receive less. Why are there such disparities in the Medicaid program, and what should be done? … Federal funds are distributed based on a matching formula that takes into account each state’s personal income per capita relative to the national average. Using this method, many states receive far more or far fewer Medicaid dollars than they would if funds were allocated based on a state’s poverty population.” (07/31/06)