How is the majority of Medicaid money spent?
According to The Continuing Medicaid Budget Challenge: State Medicaid Spending Growth and Cost Containment in Fiscal Years 2004 and 2005, Kaiser Family Foundation (2004), low-income children and their parents represent three-fourths of Medicaid beneficiaries, but account for just 30% of Medicaid spending. Most of Medicaid’s costs are for persons with disabilities and the elderly. This group represents just one quarter of Medicaid enrollees, but account for 70% of Medicaid spending because of their intensive use of acute and long-term care services.
