The Medical Assistance Program (Medicaid) was established under Title XIX of the Federal Social Security Act. Medicaid enabled states to provide medical care for public assistance recipients and medically needy persons; i.e., persons of low income who can meet their maintenance needs but have insufficient income to provide the cost of medical care.

Both Department of Medical Assistance Services and Department of Social Services (DMAS) administer the Medicaid Program.  DMAS, along with other responsibilities, is responsible for designating the medical care to be covered under the state plan. The Department of Social Services carries direct responsibility for the determination of initial and continued eligibility for medical assistance and for the enrollment in the Medical program of certain patients in state owned hospitals and long term facilities.