Which entities jointly fund Medicaid?

The correct answer indicates that Medicaid is funded jointly by federal and state governments. This partnership is fundamental to the structure of the Medicaid program as established by the Social Security Act. The federal government provides a matching grant to states, which means that for every dollar a state spends on Medicaid, it receives additional funds from the federal government, thus sharing the financial burden. The percentage of funding that comes from the federal government compared to the state varies by state and is determined by the Federal Medical Assistance Percentage (FMAP).

This collaborative funding approach allows states the flexibility to design their Medicaid programs to address specific health care needs while ensuring a baseline level of support that the federal funding provides. It underscores a fundamental characteristic of Medicaid, which is that it is a state-administered program with federal principles and funding.

The other choices do not accurately reflect the funding sources for Medicaid. Private insurance companies are not involved in direct funding for Medicaid, nor do non-profit organizations or local health departments play a role in jointly funding the program with state and federal governments.