Because no utility can guarantee continuous service, nor should they economically be on the hook to provide batteries to everyone who needs 100% continuous service.
Medicaid has no control over power distribution system maintenance but can absolutely foresee occasional unscheduled electrical outages occurring.
Just like many essential buildings, like hospitals, provision their own electrical backup systems, so too must individuals who medically rely on power.
Here’s a site talking about emergency preparedness for households with children which require medical monitoring including equipment which requires AC power;
Keeping someone alive is sometimes tough work. There is a high level of individual responsibility here for someone who is not in an assisted living facility.
Being granted a monopoly in exchange for operating a public utility creates a serious -- some would say sacred -- obligation.
How essential services are provisioned is a social choice. Formulaire notions like "Medicaid should do it" are not useful. Medicaid is staffed by people who understand medical services. Power distribution networks are staffed by people who understand power. It is far from clear that the former are the right people to be making choices about the latter.
It happens that my mother is in a semi-assisted facility. They had no power for three days, no backup power, and residents are not allowed generators. The phones there didn't work without power.