Medicaid, designed as health-resource for welfare recipients, has turned into a “cash-cow” for pharmaceutical corporations, state-organized hospital and care facilities, psychotherapists and other health care professionals and their affiliated corporations. The systematic abuse of Medicaid by professional health-based services has, in effect, worked to punish the very populations that Medicaid was designed to protect. As the population of aging Americans increases, nursing communities and community-care programs will be faced with severe financial difficulties as the Medicaid scandals continue to strain the available resources for health-based assistance.