California and Medicaid: What the data says
The federal government is deferring $1 billion in Medicaid payments to California and Minnesota. Here's a look at the numbers.
On July 21, Secretary of Health and Human Services Robert F. Kennedy announced that the Centers for Medicare and Medicaid Services (CMS) would be deferring more than $1 billion in Medicaid payments to California and Minnesota while it investigates allegations of fraud in the states.
Let's break down the data on Medicaid in California and what this news might mean for the program. (Check out Minnesota's picture here.)
How much does the federal government contribute to Medicaid in California?
Medicaid is a program that provides health insurance for people with low incomes. It is jointly funded by the states and the federal government. In fiscal year 2024, the federal government covered 64.8% of the overall program costs, while states covered the remaining 35.2%. The California state budget covered 38.2% of Medicaid costs, 17th among states.
The California state government covered 38.2% of Medicaid costs in fiscal year 2023, above the national average of 35.2%.
State government share of Medicaid costs (FY 2024)
How much is spent on Medicaid in California?
Combining state and federal funding, Medicaid cost $157.1 billion in California in fiscal year 2024, making up 32.4% of the state’s annual budget.
In 2024, the budget was split between:
- Payments to private health plans that states contract with ($68.9 billion)
- Long-term services and supports like nursing home care and home health ($32.0 billion)
- Covered costs for low-income seniors and people with disabilities ($3.7 billion), and
- Other benefits ($45.8 billion).
The Affordable Care Act gave states the option to extend eligibility to a larger subset of adults than previously possible. California expanded Medicaid in January 2014.
Medicaid costs have risen 53% in California since 2014, higher than the 45% nationwide increase in costs.
In FY 2024, the federal and California government spent a combined $157.1B in the state on Medicaid.
Medicaid spending in California by level of government, FY 2014–2024
On a per-enrollee basis, Medicaid’s $10,067 in spending in California was 6.9% lower than the national average.
In FY 2024, California spent $10,067 per Medicaid enrollee on benefits.
Total inflation-adjusted Medicaid spending per enrollee (FY 2016 – 2024)
How many people are on Medicaid in California?
California has a higher-than-average Medicaid enrollment rate. As of fiscal year 2024, 14.8 million Californians were enrolled in Medicaid. That’s a share of the state's population on Medicaid, above the national average of 26%. California ranks 3rd among all states in Medicaid enrollment by population share.
In 2024, 37.6% of California residents were covered by Medicaid.
Average monthly Medicaid enrollment as a share of the population, FY 2014 – 2024
There are five categories of California enrollees:
- Children
- Pregnant women and parents or caretakers
- Adults without dependent children
- People with disabilities (including both adults and children)
- Seniors (age 65 and over)
Get more context around the news delivered directly to your inbox with our flagship newsletter.
Keep exploring
- Minnesota and Medicaid: What the data says - The federal government funded 65% of Medicaid costs as of 2024. In Minnesota, it covered 58% of the $19.3 billion spent.
- How many people are on Medicaid in the US?
- How many people receive government assistance? - In 2022, around one in three Americans was enrolled in at least one government assistance program.
- Are immigrants eligible for government assistance? - Eligibility for federal benefits depends on immigration status. Recent policy changes have narrowed access for some.
