State Medicaid Programs Face Increased Spending On Medicare Premiums.

Area of Science:

• Health Policy
• Public Health
• Gerontology

Background:

• Medicaid plays a crucial role in covering Medicare costs for low-income seniors.
• The population of dually enrolled Medicare-Medicaid beneficiaries is growing.
• Understanding spending trends is vital for fiscal planning.

Purpose of the Study:

• To analyze trends in dual Medicare-Medicaid enrollment from 2013-2024.
• To quantify changes in Medicaid spending on Medicare premiums (Parts A and B).
• To identify drivers of increased spending, including enrollment and premium costs.

Main Methods:

• Utilized administrative data for Medicare and Medicaid beneficiaries.
• Characterized changes in the number of dually enrolled individuals.
• Analyzed Medicaid expenditures on Medicare Part A and Part B premiums.

Main Results:

• Dual enrollment increased by 27% between 2013 and 2024.
• Medicaid spending on Medicare premiums nearly doubled.
• Growth in Part B premium spending was driven by both increased enrollment and rising per-beneficiary costs.

Conclusions:

• State Medicaid programs face escalating financial burdens from rising Medicare Part B premium costs.
• Limited state control exists over these growing expenditures without federal intervention.
• Policy interventions may be necessary to manage costs for dually eligible individuals.