5 Observations on Medicaid Spending

Medicaid provides health insurance coverage for more than 66 million low-income Americans, a number that is expected to grow significantly as states expand their Medicaid programs under the Patient Protection and Affordable Care Act.

By 2024, about 89 million people will be enrolled in Medicaid at some point during the year, and federal spending on the program is expected to rise from $265 billion in 2013 to $574 billion in 2024, according to the Congressional Budget Office.

Spending at the state level varies, given the flexibility states have to expand beyond program benefit and coverage minimums as well as determine methods of care delivery and provider payment rates, according to a report from the Kaiser Family Foundation. Here are five key observations from the report on how Medicaid spending per enrollee varies across states.

1. In fiscal year 2010, 13 states including the District of Columbia spent anywhere from $7,500 to more than $10,500 per full-benefit Medicaid enrollee. Fifteen states spent $6,200 to $7,500, and 13 spent $5,300 to $6,200. Ten states spent $4,150 to $5,300.

2. New York spent the most at $10,509 per full-benefit enrollee.

3. Georgia spent the least: $4,151 per enrollee.

4. In general, states in the South tend to have lower per enrollee spending, while states in the Northeast tend to spend the most, according to the report.

5. State spending is generally influenced by five main factors: available revenue, demand for public services, healthcare markets, Medicaid policy choices and the state budget and policy process.

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