Each state administers its Medicaid program in accordance with its own Medicaid plan, which determines the groups of individuals to be covered, services to be provided, methodologies for providers to be reimbursed, and the administrative requirements that states must meet. To receive federal matching dollars for services provided to Medicaid beneficiaries, each state must submit a Medicaid plan for review and approval by HHS. States must meet certain federal requirements, but have flexibility beyond these federal parameters.
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