Low-Income State Medicaid Funding


Low-Income State Medicaid Funding


Low-Income State Medicaid Funding has come under the microscope for the amount of money they give to the federal government versus the amount of Medicaid funding States receive. That is partially due to the funding states receive from the government determined by a multitude of factors.

Medicaid and CHIP distribute leftover money from higher income per capita states to those states with less financial flexibility. Consequently, States with lower income receive more federal assistance than States with higher incomes. 

21 states and the District of Columbia give more to the United States Treasury than they receive back in Medicaid funding, and 29 states receive more funding from the government than they give.

The states of California, Florida, Illinois, Minnesota, New Jersey, Virginia, and Washington give the most money to the Federal Government, sending at least $3 billion per state. Alabama, Arizona, Kentucky, Louisiana, Mississippi, North Carolina, and South Carolina receive $3 billion more than they give to the federal treasury.

However, there is a difference between Medicaid expansion spending and general Medicaid spending. Some states have not expanded their Medicaid program, leaving a lot of federal funding on the table. According to healthpayerintelligence.com, if states expanded their Medicaid programs universally, the majority of the states would receive more funding from the government than they give to the treasury.

In summary, Medicaid expansion is something that could be on the horizon for states who need more federal income to sustain economically. The ACA Medicaid expansion intends to lower the uninsured rates among lower-income adults. It also provides an option for people who do not have access to employer coverage to purchase private health coverage on their own. 

At the beginning of the Coronavirus pandemic back in March, the Trump Administration provided states with enhanced Medicaid funding due to the national emergency to help states get the equipment they need to be able to handle all things COVID. That is classified as Medicaid spending, while the additional resources some states receive is for Medicaid expansion spending, which varies state by state.

We hope this information on Low-Income State Medicaid Funding is helpful. 

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