New York’s per capita Medicaid costs have remained the highest among the 50 states even as nationwide spending on the program surged during the pandemic.

New York’s version of the safety-net health plan spent a total of $83.4 billion in the federal fiscal year ending in September 2022, according to a recently released financial report by the Centers for Medicare & Medicaid Services.

That equated to $4,240 per resident, which was more than any other state and 70 percent above the U.S. average. New York was outspent only by the District of Columbia, which had per capita Medicaid costs of $5,784.

 

Medicaid is jointly financed by the federal, state and local governments. New York's non-federal share – a mix of money from the state, New York City and the 57 counties – amounted to almost $1,500 per resident, which was more than any other jurisdiction, including the District of Columbia.

New York's population-adjusted Medicaid costs were already first in the nation heading into the pandemic. Yet between 2019 and 2022, its total spending surged by 37 percent, which was six points faster than average.

The state's Medicaid spending level is partly driven by its generally high health-care costs. Its 2022 costs per enrollee – as opposed to per resident – were the fifth-highest among the states at $11,644.

Another factor is broad enrollment. In 2022, New York's Medicaid program covered more than one-third of its population, or 7.2 million people, an increasing number of whom live above the federal poverty line.

The 24-point gap between New York's enrollment rate (36 percent) and its poverty rate (12 percent) is the widest of any state.

 

About the Author

Bill Hammond

As the Empire Center’s senior fellow for health policy, Bill Hammond tracks fast-moving developments in New York’s massive health care industry, with a focus on how decisions made in Albany and Washington affect the well-being of patients, providers, taxpayers and the state’s economy.

Read more by Bill Hammond

You may also like

The Attorney General’s MFCU SNAFU

Attorney General Letitia James' latest fight with the Trump administration focuses on New York's Medicaid Fraud Control Unit, a federally funded agency housed in James' office. On T Read More

Healthcare Revelations in the Enacted Budget Financial Plan

The state financial plan published on June 10 disclosed key information about healthcare revenue and spending that lawmakers had not made public when approving the annual budget two weeks before. Read More

Federal Suit Traces Medicaid Fraud to the Top of NYS Government

The Trump administration's latest salvo against Medicaid fraud takes aim at a different kind of target – two high-ranking New York officials along with a major state contractor. A Read More

Healthcare Highlights in the New State Budget

Governor Hochul's focus on affordability seems to have skipped over the healthcare portions of the new state budget. The deal finalized May 27 Read More

Lawmakers Consider Hiking Fees for Filling Prescriptions

UPDATE: The proposal discussed below passed the Assembly Friday evening by an unofficial vote of 133-0. Having previously been approved by the Senate, the bill will head to Governor Hochul's desk for her signature or ve Read More

Budget Deal Reportedly Earmarks $100M for 1199 and Extends MCO Tax

As Governor Hochul and legislative leaders rush to finalize the overdue state budget, outlines of some healthcare-related deals have begun to emerge from the closed-door negotiations. Read More

Albany Should Listen to Jamie Dimon

In his annual message to shareholders, JP Morgan Chase's chief executive, Jamie Dimon, offered a timely and pointed warning for New York policymakers. It's worth , with emphasis add Read More

Albany Wavers on Shutting Down a Medicaid Racket

As Washington threatens to crack down on fraud and abuse in New York's Medicaid program, state legislators are doing their best to demonstrate why federal intervention is needed. A Read More