Public insurance programs such as Medicaid and Medicare are administered by CMS. Which statement is true?

• A. Administered by CMS; does not pay for long-term stays like residential or nursing home care
• B. Administered by private insurers; covers all long-term care
• C. Not funded by the government
• D. Only covers people with high income

Answer: (A)

CMS administers Medicare and Medicaid, and a defining fact many students learn is that Medicare does not cover ongoing custodial or long-term residential care, while Medicaid does pay for long-term care for those who qualify. The statement captures the idea that these public programs are run by the federal agency and that long-term stays are not a typical Medicare benefit, which is the aspect often highlighted in health policy foundations. The other options conflict with who runs the programs (they are not run by private insurers) or what they cover (they are government-funded and do not restrict eligibility solely to high income).