Statement of ProblemMedicare and Medicaid are two of the largest broken systems in the United States, which must support themselves to provide care to their beneficiaries. Both Medicare and Medicaid are funded through a joint effort between the federal government and local state governments. If and when these governments choose to cut funding or reduce spending, Medicare and Medicaid will take the biggest hit. Most people see these two benefits as one, two benefits that the government takes out of their paycheck to help fund health care. Even though the government everywhere deducts some money from your paychecks, Medicare and Medicaid are two very different programs. Medicare was designed for beneficiaries age sixty-five or older and for enrollees who are permanently disabled and unable to work. Medicare benefits are claimed at the Social Security office, where proof of eligibility is required. Medicaid, however, offers health benefits for those who have low incomes and do not have insurance from their jobs (Medicare.gov, 2008). Medicaid supports children under the age of nineteen, people over the age of sixty-five, enrollees who are disabled, and those who need permanent care in nursing homes. Potential beneficiaries can apply for Medicaid through their state's Medicaid agency (Medicare.gov, 2008). These requirements overlap between the two, and some beneficiaries qualify for both benefits. This means that Medicaid is sometimes used to help pay for Medicare premiums, and those who qualify for both programs are considered "dually eligible" and usually enroll in both programs to reduce personal costs. Medicare and Medicaid both have their own financial problems, each having its own burdens, a… middle of paper… while bearing some of the costs, and the ability of states to manipulate the program to obtain federal funding. funds (Weil, 2003). The enormous increase in Medicaid costs is borne individually by states and reflects the actual costs associated with the growing eligible population requiring the services offered by Medicaid. Medicaid is a broken system that largely fails to meet the needs of its beneficiaries. Despite its chronic failures to provide quality health care, Medicaid is apparently racking up a gigantic bill for taxpayers (Frogue, 2003). Medicaid's budget problems are secondary to its unremarkable structure, which leaves its beneficiaries with limited choices when dealing with their own health care. Instead, regulations are established to reduce costs; instead of allowing Medicaid beneficiaries free rein to choose who to seek care from (Frogue, 2003)