New State Health Compare Measure: Medicaid Expenses as a Percent of State Budgets

Medicaid provides public health coverage to millions of low-income individuals and families and serves as an important safety net program for those in need. Medicaid also serves an important role for low-income elderly and the disabled by covering services not included in Medicare, such as long-term care and other support services for persons with mental or physical disabilities.ⁱ The program is jointly financed by the federal and state governments along with the Children’s Health Insurance Program (CHIP).ⁱⁱ 

This brief reviews the federal and state shares of Medicaid spending and highlights a new measure on State Health Access Data Assistance Center’s (SHADAC) web-based data tool – State Health Compare. Our measure presents total Medicaid spending as a percent of state budgets, including trends over time and variation in spending by state. We acknowledge both state and federal contributions to this total measure, highlighting the significant role of federal financing in the Medicaid program.