Which statement about Medicaid is true?

• A. It offers identical benefits in all states.
• B. Benefits vary by state.
• C. It never pays for prescription drugs.
• D. It covers only hospital services.

Answer: (B)

Medicaid benefits vary by state because while the federal government sets minimum requirements, each state administers its own plan and decides which optional services to cover within those broad guidelines. That leads to differences in what’s covered, how much is paid, and which providers are in-network from one state to another. So the statement that benefits vary by state is true. The idea that it pays for identical benefits everywhere isn’t accurate, and Medicaid does cover prescription drugs (though formularies and cost-sharing can differ by state), and it covers far more than hospital services, including physician visits, labs, preventive care, and long-term care in many cases.