On July 30, 1965, President Lyndon Johnson signed the law establishing the Medicare and Medicaid programs. With that, the prospects for healthier living and a more secure future brightened for millions of Americans. The Medicaid program, designed as a federal-state partnership, was created to provide health coverage for low-income families and children, pregnant women, the elderly and people with disabilities. Medicaid is highly adaptable, which is central to its capacity to rise to complex new challenges.