How much does Medicaid cost in Michigan?
Updated monthly
A combined $25.4 billion in state and federal spending in fiscal year (FY) 2024, the most recent data available. A health insurance program for low-income individuals, Medicaid is jointly funded by both levels of government, with the federal government covering 71.6% of the spending and the state government covering 28.4%. The cost came out to $9,500 per enrollee or $2,500 for every resident.
$25.4B
combined federal and state spending on Medicaid in Michigan (FY 2024)
28.7%
Medicaid’s share of Michigan state government spending (FY 2023)
In FY 2023, the latest year of data available, Medicaid accounted for 28.7% of the state's budget (this includes federal funding), lower than the 30% average among all states.
In FY 2024, the federal and Michigan government spent a combined $25.36 in the state on Medicaid.
Medicaid spending in Michigan by level of government, FY 2014–2024
How much of Michigan state government spending is on Medicaid?
Medicaid is a state-administered program and one of the largest categories of spending for state governments. In Michigan during FY 2023, the latest year of data available, Medicaid accounted for 28.7% of the state’s budget. This includes funds that came from the federal government.
In FY 2023, Medicaid accounted for 28.7% of Michigan state government spending.
Shares of state government spending, including federally funded, by category
What does Medicaid spending in Michigan pay for?
About 65.4% of Michigan's 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 (18.4% 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 (3.3%).
In FY 2024, 18.4% of Medicaid benefit spending in Michigan went toward long-term services and supports.
Medicaid benefit spending, by service type
Medicaid spending per enrollee
In FY 2023, state and federal governments spent a combined $9,109 per Medicaid enrollee.
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Methodology
USAFacts standardizes data, in areas such as time and demographics, to make it easier to understand and compare.
The analysis was generated with the help of AI and reviewed by USAFacts for accuracy.
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.
