In 2021, Medicare and Medicaid national health expenditures reached 900 billion U.S. dollars and 734 billion U.S. dollars, respectively. The largest expense category for both healthcare care programs was hospital care.
Long-term care solutions
Medicaid’s second-largest expense category was other health care, which includes programs that provide alternatives to long-term institutional services. The use of home- and community-based services can substantially reduce expenditures for enrollees who would otherwise have to receive care in an institutional setting, such as a nursing home. In recent decades, there has been a significant shift in the distribution of Medicaid’s long-term care services expenditures.
Medicaid’s federal-state partnership
Medicare is a health insurance program solely funded by the federal government, whereas Medicaid plays an important role in both federal and state budgets. The federal government establishes certain parameters for all states to follow, but states can decide who gets coverage and what gets covered in its version of Medicaid. In 2021, California was the state with the highest Medicaid expenditure.
Distribution of Medicare and Medicaid spending in 2021*
* Health spending refers to national health expenditures.
Figures may not equal 100 percent due to rounding.
Government administration includes the administrative costs of government health care programs such as Medicare and Medicaid.
Net cost of health insurance reflects the difference between benefits and premiums for private insurance and includes administrative expenses, premium taxes,
and profits.
Other health care refers to the category other health, residential, and personal care.
Other medical products is durable medical equipment and nondurable medical products.
Profit from the additional features of your individual account
Currently, you are using a shared account. To use individual functions (e.g., mark statistics as favourites, set
statistic alerts) please log in with your personal account.
If you are an admin, please authenticate by logging in again.
Learn more about how Statista can support your business.
CHCF. (August 7, 2023). Distribution of Medicare and Medicaid spending in 2021* [Graph]. In Statista. Retrieved December 08, 2024, from https://www.statista.com/statistics/247706/medicare-and-medicaid-spending-distribution-in-the-us/
CHCF. "Distribution of Medicare and Medicaid spending in 2021*." Chart. August 7, 2023. Statista. Accessed December 08, 2024. https://www.statista.com/statistics/247706/medicare-and-medicaid-spending-distribution-in-the-us/
CHCF. (2023). Distribution of Medicare and Medicaid spending in 2021*. Statista. Statista Inc.. Accessed: December 08, 2024. https://www.statista.com/statistics/247706/medicare-and-medicaid-spending-distribution-in-the-us/
CHCF. "Distribution of Medicare and Medicaid Spending in 2021*." Statista, Statista Inc., 7 Aug 2023, https://www.statista.com/statistics/247706/medicare-and-medicaid-spending-distribution-in-the-us/
CHCF, Distribution of Medicare and Medicaid spending in 2021* Statista, https://www.statista.com/statistics/247706/medicare-and-medicaid-spending-distribution-in-the-us/ (last visited December 08, 2024)
Distribution of Medicare and Medicaid spending in 2021* [Graph], CHCF, August 7, 2023. [Online]. Available: https://www.statista.com/statistics/247706/medicare-and-medicaid-spending-distribution-in-the-us/