Medicaid Spending Rose Nearly 10% in 2021

In 2021 the average increase in state Medicaid spending per capita across the country was 9.53 percent.  Only three states–Delaware, Tennessee, and Wyoming–saw a reduction in Medicaid spending, while four states increased per capita Medicaid spending by over 20 percent.  Those four states were Arizona, Illinois, Kentucky, and Nebraska, which increased spending by over 32 percent.  In Illinois, the increase could be related to a decrease in population, since the state lost 11 persons per 1000 residents in 2021.  

Medicaid is a health care program that assists low-income families or individuals in paying for long-term medical and custodial care costs. Medicaid is a joint program funded primarily by the federal government and run at the state level, where coverage may vary.

Medicaid Spending is the amount of money each state spent on Medicaid during a federal fiscal year.  TIA calculates Medicaid Spending Per Capita by dividing the total Medicaid spending amounts by the total population of the state in a given year.

Medicaid Spending Per Capita Ranking is calculated by ranking all the states from 1-50, from highest to lowest, depending on the "Medicaid Spending Per Capita" amounts, such that a state with the highest per capita spending is number one and the state with the lowest amount of spending is ranked number 50.  For example, in 2018, New York spent an average of $3,827.10 on Medicaid per capita and is ranked number one on the list.

Medicaid expenditures do not include administrative costs, accounting adjustments, or the U.S. Territories. Total Medicaid spending, including these additional items was $748 billion in FY 2021.