Number: RS21071
Title: Medicaid Expenditures, FY2003 and FY2004
Authors: Karen Tritz, Domestic Social Policy Division 
Abstract: Medicaid is a health insurance program jointly funded by the states and the federal government. Generally, eligibility is limited to low-income children, pregnant women, parents of dependent children, people with disabilities, and the elderly. Each state designs and administers its own program within broad federal guidelines. The federal government shares in a state's Medicaid costs by means of a statutory formula based on a state's per capita income, adjusted annually. The federal medical assistance percentage (FMAP) is the percentage of Medicaid benefit costs paid for by the federal government. FMAPs must not fall below 50% and may not exceed 83%. During FY2003 and FY2004, the federal government financed about 59% of all Medicaid costs. In FY2003, federal payments for health care services and administration of the Medicaid program totaled $161 billion, 9.7% higher than in FY2002. Combined state and federal spending in FY2003 for Medicaid totaled $275 billion, a 6.9% increase over FY2002. In FY2004, federal payments for health care services and administration of the Medicaid program totaled $174 billion, 8.6% higher than in FY2003. Combined state and federal spending for Medicaid totaled $295 billion in FY2004, a 7.2% increase over FY2003.
Pages: 6
Date: January 17, 2006