GOVT 2306 Texas Government – Public Policy in Texas 2026 - Free Practice Questions and Study Guide

The correct answer is that the federal government plays a crucial role in determining the rules and regulations for Medicare and Medicaid. Medicare, as a federally run program, is governed by federal laws and regulations set by agencies such as the Centers for Medicare & Medicaid Services (CMS). This includes establishing eligibility criteria, benefits, and funding mechanisms for Medicare.

For Medicaid, while it is a joint federal-state program, the federal government sets the broad guidelines and rules that states must follow, including minimum standards for eligibility and benefits. States have the authority to administer their own Medicaid programs within these federal guidelines, allowing for some variation in implementation from one state to another.

This means that while state legislatures may influence specific aspects of program administration and may have some role in deciding how Medicaid is implemented locally, the overarching regulations and guidelines are firmly established at the federal level. Thus, the federal government has the primary responsibility for overseeing and regulating both Medicare and Medicaid.