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

Upstate Insurance Customers Pay the Price for Medicare’s Hospital Rate Hike

A billion-dollar Medicare windfall for upstate hospitals has turned into a crisis for upstate health insurers that's threatening to disrupt coverage for millions of New Yorkers. The Read More

New York’s Proposed ‘MCO Tax’ Would Generate a Fraction of What Lawmakers Expected

The Hochul administration's proposed "MCO tax" would generate far less than the $4 billion in extra federal aid anticipated by state lawmakers when they approved the concept this spring, according to documents obtained by t Read More

Hochul Hides the Specifics of a Looming Tax on Health Insurance

The Hochul administration has requested federal approval for a multibillion-dollar "MCO tax" on health plans without announcing the move or providing details to the public. As by l Read More

Hochul’s CDPAP Overhaul Hands a Costly Win to 1199

Governor Hochul's overhaul of the Consumer Directed Personal Assistance Program reached a milestone Monday when she named a Georgia-based company as the winning bidder to be the program's statewide "fiscal intermediary" – Read More

New Yorkers’ Health Costs Spiral as Officials Take Credit for ‘Savings’

The latest round of health insurance premium hikes announced by New York regulators adds to evidence that state policies are drowning consumers instead of helping them. Late last mo Read More

What Paul Francis Got Wrong About the Empire Center’s Nursing Home Research

In February 2021, the Empire Center published the first independent analysis of the Cuomo's administration much-debated directive ordering Covid-positive patients into nursing homes. The report found that the directive was associated with a statistically significant increase in resident deaths in the homes that admitted the  infected patients. Read More

Internal Cuomo Administration Documents Showed Evidence of Harm from Nursing Home Order

State Health Department documents from June 2020, newly unearthed by congressional investigators, appear to show harmful effects from a controversial order requiring nursing homes to admit Covid-positive patients. Read More

How 1199 Earns its Reputation as Albany’s No. 1 Labor Power Broker

For the fourth time in six years, the president of New York's largest health-care union, George Gresham of 1199SEIU, has won the top spot on the "Labor Power 100" list from City &am Read More