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The US Medicaid Program: Coverage, Financing, Reforms, and Implications for Health Equity.

Julie M Donohue1, Evan S Cole1, Cara V James2

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Medicaid is a crucial US health insurance program for millions, facing pressures to balance equity and spending. Policy reforms are needed to reduce racial disparities and advance health equity for all beneficiaries.

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Area of Science:

  • Health Policy
  • Health Equity
  • Public Health Insurance

Background:

  • Medicaid is the largest US health insurance program, covering diverse low-income populations.
  • It plays a vital role in financing healthcare and addressing health disparities.
  • The program faces challenges balancing its equity goals with fiscal and political pressures.

Purpose of the Study:

  • To describe Medicaid's eligibility, enrollment, and spending.
  • To examine key policy areas: managed care, payment, delivery system reforms, Medicaid expansion, and racial/ethnic health disparities.
  • To assess opportunities for advancing health equity within Medicaid.

Main Methods:

  • Analysis of publicly available data (2010-2022) on Medicaid enrollment and expenditures.
  • Literature search of PubMed and reports from nonprofit/government organizations (2003-2022).
  • Review of evidence on managed care, delivery reforms, expansion, and health disparities.

Main Results:

  • Medicaid covered 80.6 million in 2022, representing 24.2% of the US population.
  • It accounted for $671.2 billion in health spending (2020) and significant state/federal expenditures.
  • While 38 states expanded Medicaid, disparities persist, with 56.4% of beneficiaries from minority groups facing access/quality inequities.

Conclusions:

  • Medicaid's structure, financing, and reach have evolved through reforms and expansion.
  • Significant policy reforms are essential to mitigate racial and ethnic health disparities.
  • Focusing on equity in managed care and delivery reforms can advance health equity within Medicaid.