Problem StatementMedicare and Medicaid are two of the largest failing systems in the United States, which must sustain themselves in order to provide care to their beneficiaries. Medicare and Medicaid are funded by a joint effort between the federal government and local state government. If and when these governments choose to cut funding or spending, Medicare and Medicaid will suffer the greatest consequences. Most people think of these two benefits as one and the same, two benefits that the government takes out of their paychecks to help fund health care. Although the government deducts a sum from paychecks everywhere, Medicare and Medicaid are two very different programs. Medicare was designed for beneficiaries age sixty-five and older and enrollees who are permanently disabled and unable to work. Medicare benefits are applied for at the Social Security office, where proof of eligibility is required. Medicaid, however, provides health care benefits to those who have low incomes and do not have occupational insurance (Medicare.gov, 2008). Medicaid supports children under nineteen, individuals over sixty-five, enrollees who are disabled, and those who need permanent nursing home care. Potential beneficiaries can find an application for Medicaid through their state's Medicaid agency (Medicare.gov, 2008). These requirements overlap between the two and some recipients are eligible for both benefits. This means that Medicaid is sometimes used to help pay Medicare premiums and those who perform satisfactorily on both programs are considered "dual eligible" and will typically enroll in both programs to reduce their out-of-pocket costs. Both Medicare and Medicaid have their financial problems, each has its own burdens, a middle of paper while bearing some of the costs, and the ability of states to manipulate the program to obtain funds (Weil, 2003). The overwhelming increase in Medicaid costs is borne by individual states and reflects the true costs associated with the growing eligible population in need of the services offered by Medicaid. Medicaid is a broken system that largely fails to meet the needs of its beneficiaries. Despite its chronic failures to provide quality health care, Medicaid appears to be charging taxpayers a gigantic bill (Frogue, 2003). Medicaid's budgetary problems are secondary to its insignificant structure, leaving its beneficiaries with limited choices when arranging their own health care. Instead, regulations are established to reduce costs; instead of giving Medicaid beneficiaries carte blanche to choose from whom they seek care (Frogue, 2003)