Medicaid is a medical assistance program that is partially funded by the Federal Government but run by each State. Medicaid pays for basic medical care for people and families with low incomes and resources. People who are blind or disabled, age 65 or older, children, or members of families with dependent children may be eligible. Using broad Federal guidelines, each State runs its own Medicaid program. The State decides who is eligible and the amount of medical care and services it will cover.

The Medical Assistance Program (MEDICAID) has been in effect since January 1966. In August 1994, Hawaii's Medicaid Program separated into two methods of providing services for the two major groups of recipients. Generally, for individuals who are age 65 and over, or certified blind or disabled, coverage is provided under Hawaii’s Fee-For-Service Medicaid Program where providers are paid directly for their services. For all other individuals, coverage is provided under a managed care program called Hawaii QUEST.

Hawaii QUEST, commonly known as QUEST is a program that provides health coverage through health plans for eligible Hawaii residents. It provides medical and mental health services. Dental Services are provided under the Medicaid Fee-For-Service Program. QUEST is administered by the Department of Human Services, Med-QUEST Division and is financed through the State of Hawaii and the Federal Centers for Medicare and Medicaid Services.