Medicaid is a joint federal-state program that provides medical care to nearly 70 million low-income individuals nationwide. It is a means-tested program that is managed by the states. People served by Medicaid are U.S. citizens or legal permanent residents, including low-income adults, their children, and people with certain disabilities. Medicaid has expanded rapidly since its inception in 1965. This could possibly be linked to the program's financial structure, in which the federal government matches state spending. The incentives are so dysfunctional that states have inflated the cost of health care. • State expenditures on Medicaid have increased from 0.2 percent of tax revenues in 1966 to an estimated 21 percent in 2005. • In 1975, 10 percent of the U.S. population was enrolled in Medicaid, by 2008, 19 percent were enrolled. • In FY 2010, Medicaid surpassed elementary and secondary education as the largest component of total state spending. • ObamaCare will add 18 million people to Medicaid rolls. Even without reform, Medicaid spending may increase by as much as 50 percent in 10 years. This is an unsustainable model. State-by-State Insurance Information is available at this site.