The Medicaid program is funded by both federal and state funds, with most states paying about 50 percent of the costs. It is specifically designed for people with limited income and, for millions of Americans, it is the insurance of last resort. Because the Medicaid program is an agreement between each state and the federal government, there are really about 50 different Medicaid programs. Medicaid in some states cover a long list of medical services such as, for example, eyeglasses, physical therapy, dental services and prosthetics. Some states offer very limited services. Co-pays also vary greatly by state.