Medicaid spending on the elderly rose five times faster in New York than in other states during the most recent five-year period for which data are available, according to a report issued by the Empire Center.

Between 1999 and 2004, New York’s Medicaid spending on the elderly rose 55 percent, while the rate of increase in other states was just 9 percent, the report says. At the end of the period, New York’s spending of $27,200 per elderly recipient was 142 percent more than the average for other states.

The report, which opens a multi-part Medicaid In Depth series, shows that the elderly make up just 7.5 percent of all New Yorkers on Medicaid but drive 25 percent of the state’s Medicaid budget. The Empire State spends an average $20,750 per elderly Medicaid recipient on inpatient, nursing home, home-health and personal care. Other states, meanwhile, spend an average $6,860 per elderly Medicaid recipient for the same services. The Empire Center study shows that if New York had the same average spending on the elderly as other states, its Medicaid costs would be almost $4.9 billion less.

About the Author

Tim Hoefer

Tim Hoefer is president & CEO of the Empire Center for Public Policy.

Read more by Tim Hoefer

You may also like

New York’s Health Premiums Stayed at the Top in 2025

New Yorkers and their employers paid the highest health premiums in the lower 48 states in 2025, and their costs moved further above the U.S. average, according to recently released federal data. Read More

NY’s Medicaid Fraud Watchdog Shows Declining Performance

Enforcement by the New York's Office of Medicaid Inspector General has dropped in recent years across a range of benchmarks – a sign that the state's anti-fraud efforts have slackened even as its Medicaid spending soared. Read More

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

Hammond Submits CDPAP Testimony to Congress

The Empire Center's Bill Hammond today submitted written testimony for a congressional hearing on healthcare fraud. Hammond's testimony to the focuses on evidence of overuse and wa 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