Since its creation in 1965, Medicaid became the largest source of medical and health-related services for U.S. Americans with a low income and limited resources. In 2011, Medicaidís share of total U.S. health care spending
amounted to around 16 percent. The program is funded by both federal and state government. As the percentage of people under Medicaid was growing during the last decade, Medicaid spending was increasing
According to estimates of the Centers for Medicare and Medicaid Services (CMS), approximately 56 million people were enrolled in Medicaid
in 2011. The breakdown of the enrollment
shows us that over the half of them are children; other groups include adults, disabled, and aging people. While the enrollment group
of disabled persons makes up only one fifth of all Medicaid enrollees, their share of Medicaid expenditures is by far the largest.
In 2010, Medicaid expenditures
crossed the 400 billion U.S. dollar mark for the first time, with the federal share more than twice as high as the state funds. Among all U.S. states
, New York had the highest Medicaid spending, followed by California, Texas, and Pennsylvania. Medicaidís expenditure as a percent of total U.S. health costs is especially significant in the area of personal and residential care, Medicaid hospital costs make up almost one fifth of total U.S. hospital costs.
With the Patient Protection and Affordable Care Act
, Medicaidís role within U.S. health care will become even more prominent. From 2014, the federal health care law will implement a substantial increase in Medicaid eligibility. Projections show us distinctly higher numbers in Medicaid enrollment
starting that year. Medicaid expenditure projections
anticipate a similar trend, with spending almost doubled by 2020.