Study results showed that some large states are spending more than twice as much per Medicaid beneficiary as other states of similar size, according to research published in Health Affairs.
For their study, researchers examined Medicaid cash assistance claims data for the period 2001-05 for inpatient hospital services, outpatient services, and prescription drugs. Other key findings from the study include the following:
• After controlling for case-mix, interstate variations in Medicaid spending per beneficiary are influenced more by the volume of services provided to patients than by prices for those services.
• Per beneficiary spending in the ten highest-spending states was $1,650 above the national average, most of which ($1,186 or 72 percent) was because of the greater number of services patients received.
• Spending in the 10 lowest-spending states was $1,161 below the national average, with service use contributing to only $672 or 58 percent of that amount.
• In the mid-Atlantic region (New Jersey, New York and Pennsylvania), a combination of high service volume and, to a lesser extent, high prices resulted in the most expensive regional care.
• In contrast, lower prices and volume of services in the South Central region (Alabama, Arkansas, Kentucky, Louisiana, Mississippi, Oklahoma, Tennessee and Texas) produced the least expensive care.
Read the Health Affairs news release about Medicaid spending.
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