In the Medicaid program, persons who have enough income and resources to pay for their basic living expenses (and so do not need welfare) but not enough to pay for their medical care. Medicaid law requires that the standard for income used by a State to determine if someone is medically needy cannot exceed 133 percent of the maximum amount paid to a family of similar size under the welfare program for families with dependent children (AFDC). In order to be eligible as medically needy, people must fall into one of the categories of people who are covered under the welfare cash assistance programs; i.e., be aged, blind, disabled, or members of families with dependent children where one parent is absent, incapacitated or unemployed. They receive benefits if their income after deducting medical expenses is low enough to meet the eligibility standard. Thirty-two States now provide Medicaid coverage to the medically needy.