How much does Medicaid cost in the US?
Refreshed annually
A combined $949.2 billion in state and federal spending in fiscal year (FY) 2024, the most recent data available. That’s about $2,800 for every person living in the US. As a health insurance program for low-income individuals, Medicaid is jointly funded by both levels of government, with the federal government covering the larger share.
More recent data shows that federal spending on the program was $668.13 in FY 2025. That accounts for 9.5% of all federal spending.
$949B
combined federal and state spending on Medicaid (FY 2024)
9.5%
Medicaid share of federal spending (FY 2025)
The $949.2 billion spent on Medicaid in FY 2024 was the most since the program was created in 1965. FY 2024 spending was up 3.0% over the previous year. Spending is up 45% since FY 2014, when states began expanding Medicaid to all low-income adults.
In FY 2024, federal and state governments spent $949 billion on Medicaid.
Combined federal and state government Medicaid spending, FY 1974–2024, inflation-adjusted
How much of federal spending is on Medicaid?
In FY 2025, Medicaid accounted for $668.13 or 9.5% of all federal government spending. Among other mandatory government programs, only Social Security and Medicare had more spending.
The latest data available from FY 2023 shows that Medicaid accounted for 15.1% of state budgets combined.
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Medicaid is part of the federal government’s mandatory spending, which means it’s guaranteed funding by law — unlike programs that must be renewed each year. The One Big Beautiful Bill Act, passed in July 2025, included a series of provisions aimed at cutting Medicaid spending. This includes:
- Ends Federal Medical Assistance Percentage (FMAP) bonus for states that newly expand Medicaid after 2025.
- Lowers federal match for services like emergency care for undocumented immigrants.
- Caps provider taxes that states use to draw down federal funds.
- Requires work or community engagement for some enrollees.
- Mandates cost sharing for some enrollees.
In FY 2025, Medicaid accounted for 9.5% of federal spending.
Medicaid share of federal spending, FY 1961–2025
What does Medicaid pay for?
Medicaid pays for services like doctor visits, prescription drugs and inpatient hospital care, both directly to healthcare providers and through private organizations, also known as managed care. About 53.7% of all Medicaid benefit spending in FY 2024 went to managed care. These are payments to private health plans that states contract with to deliver Medicaid services.
Unlike Medicare or most private insurance, Medicaid pays for long-term services and supports like nursing home care and home health (21.1% of Medicaid benefit spending in FY 2024). Medicaid also helps low-income seniors and people with disabilities afford Medicare by covering their premiums and out-of-pocket costs (3%).
In FY 2024, 21.1% of Medicaid benefit spending went toward long-term services and supports.
Medicaid benefit spending, by service type
In FY 2024, the latest year in which federal and state government spending data is available, the federal government provided 64.8% of all Medicaid funds. However, the federal and state shares of Medicaid costs vary throughout the US. Each state administers its own Medicaid program, each with a different mix of enrollees and coverage policies.
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Methodology
USAFacts standardizes data, in areas such as time and demographics, to make it easier to understand and compare.
Page sources
USAFacts endeavors to share the most up-to-date information available. We sourced the data on this page directly from government agencies; however, the intervals at which agencies publish updated data vary.
