Also established in 1965, Medicaid is the federal program
that provides grants to the states to provide medical care
for their indigent populations.
Both Medicare and Medicaid are administered by the Health
Care Financing Administration (HCFA), located within the
U.S. Department of Health and Human Services.
Under the Clinton Administration, HCFA allowed states
greater flexibility in the administration of Medicaid.
Medicaid in many states has adopted a system of managed
care, where recipients of services are required to be
members of health maintenance organizations (HMOs)
operated by insurance companies.
In Tennessee, Medicaid is known as TennCare.
Together, Medicare and Medicaid provide benefits to more
than 75 million people in this country.