Over the next several weeks, the United States Congress will have a debate about the future of the Medicaid program. Medicaid is a large health insurance program that impacts the lives of 78 million people, 7 million of whom are children. While there are certainly areas where the program could/should be improved, its importance to individuals and communities is not always well understood.
As with any policy debate, we should start with a basic understanding of who is impacted by the program. With this said, let’s better understand who the 78 million Medicaid patients are:
▪️ Children - 31.2 million
▪️ Low-income Adults - 15.6 million
▪️ Elderly Adults (65 ) - 9.3 million
▪️ People with Disabilities - 15.6 million
▪️ Long-term Care Beneficiaries - 7.8 million
▪️ Pregnant Women 3.9 million
Now that we understand who is covered by Medicaid, it is important to understand the financing. The program not only impacts the federal budget, but it also impacts state budgets. While it is well known that Medicaid spends a significant amount of money to provide services to eligible individuals, it is less known how much the program cost on a per capita basis? So, how much does Medicaid spend per person as compared to the other 2 national programs: Medicare and Tricare.
As you can see from the chart below, Medicaid is quite efficient, spending less than $8,000 per person. In comparison, Medicare and Tricare spend twice as much per person.