Medicaid is a Federal - State entitlement program that pays for medical services on behalf of certain groups of low- income persons. Title XIX of the Social Security Act provides for the medical assistance commonly known as Medicaid. (O'Sullivan, 1990) This means-tested entitlement program became part of federal law in 1965. Medicaid makes direct payments to medical providers for their services to eligible persons. It is the largest health program providing medical assistance to the poor.
             In order for one to be eligible for Medicaid, one must meet very strict requirements. These requirements vary from state to state therefore the Federal requirements will be discussed as well as the general state requirements. The correlation between those receiving public assistance and those receiving Medicaid seems to be directly related. "Medicaid has generally been linked to actual or potential receipt of cash assistance under a welfare program. Thus, eligible individuals have to meet the welfare definitions of age, blindness, disability, or membership in a family with dependent children where one parent is absent or incapacitated." (O'Sullivan, 1990) These stringent requirements leave out part of the population such as singles, childless couples who are not elderly or disabled.
             Besides falling into one of the above mentioned categories, they must also meet specified income and resource criteria which vary by State. "While the link to cash assistance has been the primary way to establish eligibility, states have been able to extend coverage to children who meet the income and resources requirements, but do not meet the definition of dependency." (O'Sullivan 1990).
             The other group that is affected by this institutional policy are the providers. Providers can be defined as those who perform services for the Medicaid patients. They include, but are not limited to physicians, hospital, dentists, pharmacies etc. "Low medical fee sc...