Medicaid currently costs the federal government $800 billion annually, and according to official projections, its expenses are expected to surpass $1 trillion by 2028—a rate of growth that far outstrips the overall economy or family incomes.
In 2019, Georgia received about $5,000 in federal Medicaid funding for every resident in poverty, while Alaska and the District of Columbia received more than four times that amount.
Medicaid’s true error rates hover between 15% and 25%, likely costing taxpayers at least $100 billion each year.
Fraud and mismanagement are rampant, ranging from Medicaid managed care companies providing coverage for deceased individuals to broken computer systems that fail to track enrollment and eligibility properly.
While the federal government pays about 65 percent of states’ Medicaid costs for children, pregnant women, seniors, and people with disabilities, it covers 90 percent of the medical expenses of able-bodied, working-age adults enrolled under Medicaid expansion.
Research suggests that health care resources are being diverted away from traditional enrollees and to expansion enrollees in expansion states.
Source: Gary D. Alexander and Liam Sigaud (Paragon Health Institute) at RealClear Health.