The New York Times'
Kevin Sack and Robert Pear have a very informative article about how recession-caused budget deficits are forcing state governments to make cuts in Medicaid. The big takeaway here is what a low priority the federal government has made Medicaid:
The Medicaid program already pays doctors and hospitals at levels well below those of
Medicare and private insurance, and often below actual costs. Large numbers of doctors, therefore, do not accept Medicaid patients, and cuts may further discourage participation in the program, which primarily serves low-income children, disabled adults and nursing home residents.
Unlike Medicare, Medicaid is partly funded by states. This means that while Medicaid is an entitlement program like Medicare and Social Security, eligible Medicaid patients are actually not "entitled" to much: each state gets to decide how much health coverage someone on medicaid gets.