In fiscal year 2022, Medicaid spent 8,813 U.S. dollars per full-year equivalent enrollee. However, spending per enrollee varied by state with North Dakota spending the most per enrollee at 13,001 U.S. dollars, while in South Carolina each Medicaid enrollee cost 5,199 U.S. dollars. This statistic illustrates Medicaid benefit spending per full-year equivalent (FYE) enrollee in the United States in FY 2022, by state.

Total Medicaid spending surpassed 804 billion U.S. dollars in 2022. The state of California had the highest expenditure throughout the year, followed by New York and Texas.

Federal government helps poorer states Both the federal and state governments fund the Medicaid health care program, but at least 50 percent of the costs incurred by states are matched by the federal government. The exact percentage varies by state because the matching rate was designed so that poorer states receive a larger share of program costs from the federal government. The states of Wyoming, South Dakota, North Dakota, spent the least on Medicaid costs in 2021.

Funding share of states set to increase Under the Affordable Care Act, states have the choice to expand their Medicaid programs to cover nearly all low-income Americans under age 65. For states that implemented the expansion, the federal government paid 100 percent of the state costs for all newly eligible adults from 2014 to 2016. The new matching rate has slowly declined since and reached 90 percent in 2020, which means states have to pick up ten percent of the bill. Governors are concerned about the rise in costs, and state expenditure is projected to increase by 50 percent between 2020 and 2027.

In the fiscal year 2023, Medicaid expenditure in California amounted to a total of about 124 billion U.S. dollars, of which 81.3 billion U.S. dollars were federal-funded and approximately 43 billion U.S. dollars were state-funded. California had, as expected, the highest spending and also the largest number of people enrolled in Medicaid in the United States. The Federal Medical Assistance Percentage (FMAP) varies by state depending on the state's per capita income compared to the national average.

2023 saw the largest expenditures on Medicaid in U.S. history. At that time about 894 billion U.S. dollars were expended on the Medicaid public health insurance program that aims to provide affordable health care options to low income residents and people with disabilities. Medicaid was signed into law in 1965. By 1975 around 13 billion U.S. dollars were spent on the program. Groups covered by Medicaid There are several components of the Medicaid health insurance program. The Children’s Health Insurance Program (CHIP) was started in 1997 to provide health coverage to families and children that could not afford care. As of 2021, children represented the largest distribution of Medicaid enrollees. Despite having the largest proportion of enrollees, those that were enrolled in Medicaid as children had the lowest spending per enrollee. As of 2021, disabled Medicaid enrollees had the highest spending per enrollee. Medicaid expenditures Currently, Medicaid accounts for 19 percent of all health care expenditure in the United States. Expenditures on Medicaid programs vary among the U.S. states and depend heavily on whether Medicaid expansion was accepted after the Affordable Care Act was enacted. California and New York are the top states with the highest Medicaid expenditures. It is projected that Medicaid expenditure will continue to increase at both the state and federal levels.

The United States has the highest expenditure on health care per capita globally. However, the U.S. has an unique way of paying for their health care where a majority of the expenditure falls upon private insurances. In FY 2024, around one ***** of all health expenditure is paid by private insurance. Public insurance programs Medicare and Medicaid accounted for ** and ** percent, respectively, of health expenditure during that same year. U.S. health care system Globally health spending has been increasing among most countries. However, the U.S. has the highest public and private per capita health expenditure among all countries globally, followed by Switzerland. As of 2020, annual health care costs per capita in the United States totaled to over ** thousand U.S. dollars, a significant amount considering the average U.S. personal income is around ** thousand dollars. Out of pocket costs in the U.S. Aside from overall high health care costs for U.S. residents, the total out-of-pocket costs for health care have been on the rise. In recent years, the average per capita out-of-pocket health care payments have exceeded *** thousand dollars. Physician services, dental services and prescription drugs account for the largest proportion of out-of-pocket expenditures for U.S. residents.

Objective: A one third reduction of premature deaths from non-communicable diseases by 2030 is a target of the United Nations Sustainable Development Goal for Health. Unlike in other developed nations, premature mortality in the United States (US) is increasing. The state of Oklahoma suffers some of the greatest rates in the US of both all-cause mortality and overdose deaths. Medicaid opioids are associated with overdose death at the patient level, but the impact of this exposure on population all-cause mortality is unknown. The objective of this study was to look for an association between Medicaid spending, as proxy measure for Medicaid opioid exposure, and all-cause mortality rates in the 45–54-year-old American Indian/Alaska Native (AI/AN45-54) and non-Hispanic white (NHW45-54) populations.Methods: All-cause mortality rates were collected from the US Centers for Disease Control & Prevention Wonder Detailed Mortality database. Annual per capita (APC) Medicaid spending, and APC Medicare opioid claims, smoking, obesity, and poverty data were also collected from existing databases. County-level multiple linear regression (MLR) analyses were performed. American Indian mortality misclassification at death is known to be common, and sparse populations are present in certain counties; therefore, the two populations were examined as a combined population (AI/NHW45-54), with results being compared to NHW45-54 alone.Results: State-level simple linear regressions of AI/NHW45-54 mortality and APC Medicaid spending show strong, linear correlations: females, coefficient 0.168, (R2 0.956; P < 0.0001; CI95 0.15, 0.19); and males, coefficient 0.139 (R2 0.746; P < 0.0001; CI95 0.10, 0.18). County-level regression models reveal that AI/NHW45-54 mortality is strongly associated with APC Medicaid spending, adjusting for Medicare opioid claims, smoking, obesity, and poverty. In females: [R2 0.545; (F)P < 0.0001; Medicaid spending coefficient 0.137; P < 0.004; 95% CI 0.05, 0.23]. In males: [R2 0.719; (F)P < 0.0001; Medicaid spending coefficient 0.330; P < 0.001; 95% CI 0.21, 0.45].Conclusions: In Oklahoma, per capita Medicaid spending is a very strong risk factor for all-cause mortality in the combined AI/NHW45-54 population, after controlling for Medicare opioid claims, smoking, obesity, and poverty.

In fiscal year 2023, the Children’s Health Insurance Program (CHIP) spent a total of about 23.2 billion U.S. dollars, of which 17.2 billion U.S. dollars were federal-funded and 5.9 billion U.S. dollars were state-funded. California had, as expected the highest spending and also the largest number of children enrolled in CHIP/Medicaid. The federal government matches spending for both Medicaid and CHIP, but has a higher match rate for CHIP than traditional Medicaid. The Federal Medical Assistance Percentage (FMAP) varies by state depending on the state's per capita income compared to the national average. This statistic illustrates CHIP spending in the United States in FY 2023, by state and state & federal share.

Objective: For medically treated asthma, we estimated prevalence, medical and absenteeism costs, and projected medical costs from 2015 to 2020 for the entire population and separately for children in the 50 US states and District of Columbia (DC) using the most recently available data. Methods: We used multiple data sources, including the Medical Expenditure Panel Survey, U.S. Census Bureau, Kaiser Family Foundation, Medical Statistical Information System, and Current Population Survey. We used a two-part regression model to estimate annual medical costs of asthma and a negative binomial model to estimate annual school and work days missed due to asthma. Results: Per capita medical costs of asthma ranged from $1,860 (Mississippi) to $2,514 (Michigan). Total medical costs of asthma ranged from $60.7 million (Wyoming) to $3.4 billion (California). Medicaid costs ranged from $4.1 million (Wyoming) to $566.8 million (California), Medicare from $5.9 million (DC) to $446.6 million (California), and costs paid by private insurers ranged from $27.2 million (DC) to $1.4 billion (California). Total annual school and work days lost due to asthma ranged from 22.4 thousand (Wyoming) to 1.5 million days (California) and absenteeism costs ranged from $4.4 million (Wyoming) to $345 million (California). Projected increase in medical costs from 2015 to 2020 ranged from 9% (DC) to 34% (Arizona). Conclusion: Medical and absenteeism costs of asthma represent a significant economic burden for states and these costs are expected to rise. Our study results emphasize the urgency for strategies to strengthen state level efforts to prevent and control asthma attacks.

A volatile regulatory environment at the state and federal levels has altered the makeup and concentration of some of the many family planning services clinics offer. In addition, declining patient volume because of telehealth expansion and an uncertain future regarding government funding has led to some clinics closing and to the concentration of services in some locations or drought in others. In particular, pregnancy termination services remain concentrated in independent clinics, and with medication abortion restrictions, these independent clinics will face an increase in demand. As medication abortions represent 63.0% of U.S. cases, telehealth restrictions in 28 states (Guttmacher 2025) still restrict access to medication abortion. Despite the significant shifts in pregnancy termination services, Medicaid is available for other planning services (in-person and telemedicine) and industry revenue is expected to climb at a CAGR of 3.5% by 2025 and reach $4.7 billion, when revenue will climb by 3.2% in 2025 alone. Technology continues to impact the clinic. Virtual-only clinics are increasingly providing telehealth services. Mobile abortion clinics aim to reduce travel for women in states with legal but distant abortion access and to bring family planning to others where there is a lack of maternal healthcare. Positioned near state borders where abortion is banned, they minimize driving time. Planned Parenthood, one of the largest providers of family planning services, operates mobile clinics, bringing services to states with service restrictions and to markets with shortages or undersupply of services. State actions may continue to counter federal bans that restrict services and shift in entry. For example, the Arizona Abortion Access Act may alter a clinic's decision to open a facility in the state. However, in April 2025, the federal government withheld Title X funding from 16 organizations, impacting clinics' budgets and services, including organizations like Planned Parenthood. Continued legal actions, state funding and advocacy efforts will continue to address and reverse these freezes. Looking forward, per capita disposable income will support donations and philanthropy. Assuming compensatory services are provided in other locations to offset state regulatory actions and with moderate growth in Medicaid funding, industry revenue will climb at an annual rate of 2.8% through 2030, reaching $5.4 billion, while profit remains stable.

This statistic illustrates the health spending distribution of state and local government in the United States from 2013 to 2022. In 2022, 36 percent of state and local government health spending in the U.S. was spent on Medicaid. Health spending distributionHealth spending by the state and local government in the United States is divided among four major categories. As of 2021, 36 percent of spending was dedicated to Medicaid, 33 percent to private insurance premiums, 29 percent to other health programs, and three percent to Medicare payroll tax for state and local workers. In 1960, the majority of spending on prescription medications came from the consumer’s pocket, today out-of-pocket spending for prescriptions has decreased to about 13 percent. Among OECD countries, the United States spends the largest portion of its gross domestic product on health care expenditures, totaling nearly 17 percent in 2022. In comparison, the United Kingdom spent about 11.3 percent of the nation’s GDP on health care. High income countries spend over 6,100 U.S. dollars per capita compared to the world average of around 1,177 U.S. dollars per person. Health care spending in the United States has steadily risen over the last decades. In 1970, 355 U.S. dollars was expended on health care per capita in the United States; by 2021, this figure had risen to 12,591 U.S. dollars per capita. The increase in health care expenditure in the country may lie in parallel with the increase in premiums. Spending for hospitals, physicians, specialists, and dentists are significantly higher than other high income countries. Health care provider prices are especially high in the U.S. due to greater access to medical technologies as well as the obesity epidemic in the country.

Hospitals play a critical role in healthcare, offering specialized treatments and emergency services essential for public health, regardless of economic fluctuations or individuals' financial situations. Rising incomes and broader access to insurance have fueled demand for care in recent years, supporting hospitals' post-pandemic recovery initiated by federal policies and funding. The recovery for many hospitals was also promoted by mergers that lessened financial strains, especially in rural hospitals. This trend toward consolidation has resulted in fewer enterprises relative to establishments, enhancing hospitals' bargaining power regarding input costs and insurance reimbursements. With this improved position, hospitals are expected to see revenue climb at a CAGR of 2.0%, reaching $1.5 trillion by 2025, with a 3.2% increase in 2025 alone. Competition, economic conditions and regulatory changes will impact hospitals based on size and location. Smaller hospitals, particularly rural ones, may encounter more significant obstacles as the industry transitions from fee-based to value-based care. Independent hospitals face wage inflation, staffing shortages and drug supply costs. Although state and federal policies aim to support small rural hospitals in addressing hospital deserts, uncertainties linger over federal Medicare funding and Medicaid reimbursements, which account for nearly half of hospital care spending. Even so, increasing per capita disposable income and increasing the number of individuals with private insurance will boost revenues from private insurers and out-of-pocket payments for all hospitals, big and small. Hospitals will continue incorporating technological advancements in AI, telemedicine and wearables to enhance their services and reduce cost. These technologies aid hospital systems in strategically expanding outpatient services, mitigating the increasing competitive pressures from Ambulatory Surgery Centers (ASCs) and capitalizing on the increased needs of an aging adult population and shifts in healthcare delivery preferences. As the consolidation trend advances and technology adoption further leverages economies of scale, industry revenue is expected to strengthen at a CAGR of 2.4%, reaching $1.7 trillion by 2030, with steady profit over the period.

ART = antiretroviral therapy, CI = confidence interval, HR = hazard ratio.All analyses use Cox proportional hazards regression.*Hazard ratios obtained after 1∶3 matching (with replacement) 683 “exposed” to 399 “unexposed” individuals based on propensity of living in a state contributing to the ADAP budget.Both regression-adjusted and propensity-score matched analyses account for the following variables: age; sex; race/ethnicity; transmission risk; CD4+ count and viral load at eligibility; history of alcohol abuse, substance abuse, and mental disorders; year of eligibility; type of cohort; clinic-specific mechanisms to help obtain ART; state-level population density, % population of black race, % population below poverty line, median household income, and per capita Medicaid spending on HIV.

California has more Medicaid and CHIP enrollees than any other state in the United States. As of April 2023, approximately ** million Americans were enrolled in the Medicaid health insurance programs in California, which accounted for approximately ** percent of the total number of Medicaid enrollees nationwide (**** million). Blow to Medicaid expansion plans California is one of many states that has expanded its Medicaid program under the Affordable Care Act (ACA) to encourage more low-income adults to sign up for health coverage. One of the original aims of the ACA was to limit some of the variations in state Medicaid programs, but the Supreme Court ruled that the expansion should be optional. Governors of the states that did not expand said they were concerned about long-term costs. California is the leading state for Medicaid expenditure, spending approximately **** billion U.S. dollars in FY2020. Health coverage for children The Children’s Health Insurance Program (CHIP) was created as a complement to Medicaid, expanding the reach of government-funded health coverage to more children in low-income families. As of May 2021, over **** million children were enrolled in Medicaid/CHIP programs in California, more than any other state. As of January 2021, the median Medicaid/CHIP eligibility level for children was *** percent of the federal poverty level.

The rising preference for community and home care services has contributed significantly to industry growth and performance. Baby boomers entering the later phase of adulthood, increased life expectancy and the greater incidence of disabilities in individuals of advancing age have contributed to a higher demand for long-term care services such as adult day care and nonmedical home care services. Home aid has become the dominant sector in long-term care since it provides independence and comfort, and adult day care centers offer a place for community interaction. The growth in homecare services weathered the impact of the pandemic, and industry-wide revenue has been growing at a CAGR of 2.0% through 2025 to total $80.1 billion, when revenue will climb by an estimated 3.4%. The industry has faced challenges as a fragmented market. Out-of-market competition from residential care providers and the increased presence of franchises challenge industry pricing and high service offerings for many needing services. However, telemedicine and wearable technology have changed the scope and quality of services. They can abate the need for residential services by providing remote health monitoring, offering virtual consultations and ensuring continuous care, enabling seniors to receive support at home. Their adoption will depend on the costs of the technology and continued funding support by Medicaid and Medicare. The continued need and preference for nonmedical home aid services will be a significant future demand driver; however, with rising wages, industry revenue will be significantly impacted by the level of funding for older adults, children and individuals with disabilities. The changes to Medicaid, Medicare funding and, in particular, State Home and Community-Based Services waivers that help reduce costs of home services compared to residential facilities will impact future funding for services and industry revenue. A healthy economy will support the payment for services not covered by government programs, and forecasts for strong per capita disposable income growth will support out-of-pocket service payments. While government funding cutbacks and staff layoffs could hamper the sector's future growth and profitability, industry revenue is forecast to strengthen at a CAGR of 2.2% through 2030 to reach $89.4 billion, with profit remaining stable.

ART = antiretroviral therapy, CI = confidence interval, HR = hazard ratio.All analyses use Cox proportional hazards regression.*Hazard ratios obtained after 1∶3 matching (with replacement) 398 “exposed” to 222 “unexposed” individuals based on propensity of living in a waiting list state.Both regression-adjusted and propensity-score matched analyses account for the following variables: age; sex; race/ethnicity; transmission risk; CD4+ count and viral load at eligibility; history of alcohol abuse, substance abuse, and mental disorders; year of eligibility; type of cohort; clinic-specific mechanisms to help obtain ART; state-level population density, % population of black race, % population below poverty line, median household income, and per capita Medicaid spending on HIV.

The Centers for Medicare and Medicaid Services estimate that prescription drug expenditure in the United States will reach around 460 billion U.S. dollars in 2024. This amount includes only retail drug spending, excluding nonretail. Estimations of drug spending can vary by investigating organization. For the U.S., among the most relevant drug spending calculations are provided by CMS, ASPE (Assistant Secretary for Planning and Evaluation), and pharmaceutical market researcher IQVIA. High drug prices in the U.S.The United States is the country with the highest total drug spending, and also with the highest per capita pharmaceuticals spending among developed countries. This is mostly connected to higher drug prices in the United States. For example, the price for the blockbuster drug Humira was almost three times higher in the United States than in Germany in 2017. But whereas in other countries, governments more or less directly control drug prices, the U.S. leaves drug pricing to market competition. As a consequence, the U.S. market is the most profitable for pharmaceutical companies. Where the money is spentNearly half of all Americans have taken at least one prescription medicine within the preceding month. The therapeutic areas where spending is the highest are ‘traditionally’ to be found among antidiabetics, oncologics, autoimmune, and respiratory diseases. Based on number of prescriptions filled, antihypertensives, pain reliever, and mental health drugs are the leading classes.

The increase in the number of eating disorder cases has stimulated industry growth and supported the emergence of substitute services. However, many individuals still don't receive treatment because of high costs, lack of awareness and the stigma around seeking help. Public and private health insurers often provide limited coverage or exclude eating disorder treatments, creating financial barriers and hindering industry growth. Although social media and online platforms have increased public awareness and provided services, social media is criticized for diminishing the positive impact of these efforts. Legislative efforts are underway to hold platforms accountable for any mental harm or the promotion of eating disorders. Despite these challenges, positive economic factors such as higher per capita income have contributed to industry revenue growing at a CAGR of 2.1%, reaching a total of $4.8 billion in 2025 and an estimated revenue gain of 2.1% in 2025 alone. Competitive pressures limit clinic revenue and profit growth, as high treatment costs push potential patients toward alternatives like university programs, app-based online treatments and local support groups. Some residential providers have expanded to provide outpatient services, and some clinics can offer advanced therapies such as VR immersion and genetic testing, which smaller clinics may lack. Still, many individuals remain unable to afford treatment until mental health parity laws are enforced. Innovative treatments enhance the value of higher-priced services, but competition for skilled workers like therapists, nurses and doctors keeps wages high, preventing clinics from lowering prices to attract consumers. Favorable economic trends may drive clinic growth, but the impact of government funding may slow this growth. The reduction in funding resulting from changes in Medicare and Medicaid funding will stress hospitals, outpatient clinics and other providers of eating disorder services. Those clinics that provide services to those depending on Medicare and Medicaid will see a greater revenue reduction than clinics with clients who pay out of pocket or have private insurance. However, local, private and state government efforts to prioritize mental health will help reduce the stigma associated with eating disorders. With attitudes changing and telehealth boosting the reach of clinics beyond fixed geographies to reach different clients with specialized services, industry revenue will strengthen at a CAGR of 1.7% through 2030, reaching a total of $5.2 billion. However, profit will drop to 9.0%.

In 2020, around **** percent of the U.S. population had private health insurance coverage. This share slightly decreased to **** percent in 2024. Medicare and Medicaid together provided healthcare coverage to approximately ** percent of the population in the United States. U.S. population with and without health insurance In 2022, over half of the U.S. population had health insurance coverage through their place of employment, around 54.5 percent. Approximately 35 percent had coverage through some form of government plan in the same year. While still low, the U.S. population without health insurance has decreased slightly from the previous year. A large portion of those without health insurance are between 19 and 25 years of age. Approximately ** percent of adults in this age group did not have health insurance in 2021. Health expenditure The United States spent approximately ****** U.S. dollars per capita on health in 2022 while in comparison, the Canadian government expended some ***** U.S. dollars per capita in the same year. However, higher health spending did not equate to a better health system or outcomes and when ranked with other comparable high-income countries, the U.S. came in last on nearly all health performance categories from access of care to health outcomes.

This statistic shows personal health care expenditure by source of funds in the United States, comparing the years 1990 and 2018. In 1990, some 70 billion U.S. dollars of personal health care expenditure was funded by the Medicaid program.

Personal health care expenditure in the United States

Health care facilities in the U.S. are mostly considered part of the private sector. The United States' total health care expenditures were over 3.6 trillion U.S. dollars in 2018. Globally, the U.S. spent the most on health care per capita as well as, as a percentage of its GDP. It has been ranked as one of the least efficient health care systems in the world. Health care expenditure includes a variety of services and products such as hospital care, physician and clinical services, dental, home health care, and nursing care facilities.

Personal health care expenditure in the United States has skyrocketed from 1990 to 2018. Funds for health care are still primarily derived from private health insurance and governmental health plans. A slowing growth in out-of-pocket payments can indicate higher cost-sharing and increased enrollment in consumer-directed health plans. In 1990, private health insurance funded some 205 billion U.S. dollars of health care services and increased to over one trillion U.S. dollars by 2017. Health care expenditure through private insurance has grown to over 35 percent of total personal health costs. The percentage of U.S. citizens covered by Medicare has increased from the 1990s until today. Medicare is a national social insurance program through the U.S. federal government which guarantees health insurance for citizens over the age of 64. Medicare expenditure totaled 697 billion U.S. dollars in 2018.

In 2021, California reported some 6.49 million Medicare beneficiaries and therefore was the U.S. state with the highest number of beneficiaries. Medicare is a U.S. publicly funded health insurance program that covers those that are aged 65 years and older and those that have certain disabilities. This statistic depicts the leading 10 U.S. states based on their number of Medicare beneficiaries in 2021.