Explainer: Medicaid
Our Privacy Policy has been updated! The Conference Board uses cookies to improve our website, enhance your experience, and deliver relevant messages and offers about our products. Detailed information on the use of cookies on this site is provided in our cookie policy. For more information on how The Conference Board collects and uses personal data, please visit our privacy policy. By continuing to use this Site or by clicking "OK", you acknowledge our privacy policy and consent to the use of cookies.  Our Privacy Policy has been updated! Detailed information on the use of cookies on this site is provided in our cookie policy and our privacy policy. 
TCB Tourch
Loading...
  • logoImage
  •  
    • US
    • EUROPE
    • ASIA
  • 2

    Close
    • Insights
        • Insights
        • Explore by Center
          • Explore by Center
          • CED
            Committee for Economic Development

          • Economy, Strategy & Finance

          • Governance & Sustainability

          • Human Capital

          • Marketing & Communications

        • Explore by Content Type
          • Explore by Content Type
          • Reports

          • Upcoming Webcasts

          • On Demand Webcasts

          • Podcasts

          • Charts & Infographics

        • Trending Topics
          • Trending Topics
          • Artificial Intelligence (AI)

          • Navigating Washington

          • Geopolitics

          • US Economic Forecast

          • Sustainability

          • Future of Work

    • Events
        • Events
        • Upcoming Events
          • Upcoming Events
          • People First: Opportunity and Access

          • CHRO Summit: Navigating through a Tsunami of Change

          • Future: People Asia

          • Executive Compensation in a Disruptive World

          • CED Distinguished Leadership Awards Celebration

          • The 2025 IBI/Conference Board Health and Productivity Forum

          • Explore all Upcoming Events

        • Member-Exclusive Programs
          • Member-Exclusive Programs
          • Center Briefings

          • Experts Live

          • Roundtables

          • Working Groups

          • Expert Briefings

    • Data
        • Data
        • Consumer Confidence Index

        • Data Central

        • TCB Benchmarking

        • Employment Trends Index

        • Global Economic Outlook

        • Leading Economic Indicators

        • Help Wanted OnLine

        • Labor Markets

        • Measure of CEO Confidence

        • Human Capital Benchmarking &
          Data Analytics

        • CMO+CCO Meter Dashboard

    • Centers
        • Centers
        • Our Centers
          • Our Centers
          • Committee for Economic Development

          • Economy, Strategy & Finance

          • Governance & Sustainability

          • Human Capital

          • Marketing & Communications

        • Center Membership
          • Center Membership
          • What Is a Center?

          • Benefits of Center Membership

          • Join a Center

    • Councils
        • Councils
        • Find a Council
          • Find a Council
          • Economy, Strategy & Finance

          • Governance & Sustainability

          • Human Capital

          • Marketing & Communications

        • Council Membership
          • Council Membership
          • What is a Council?

          • Benefits of Council Membership

          • Apply to a Council

    • Membership
        • Membership
        • Why Become a Member?
          • Why Become a Member?
          • Benefits of Membership

          • Check if Your Organization is a Member

          • Speak to a Membership Associate

        • Types of Membership
          • Types of Membership
          • Council

          • Committee for Economic Development

          • Economy, Strategy & Finance

          • Governance & Sustainability

          • Human Capital

          • Marketing & Communications

          • Insights

        • Already a Member?
          • Already a Member?
          • Sign In to myTCB®

          • Executive Communities

          • Member-Exclusive Programs

    • About Us
        • About Us
        • Who We Are
          • Who We Are
          • About Us

          • In the News

          • Press Releases

          • Our History

          • Support Our Work

          • Locations

          • Contact Us

        • Our Community
          • Our Community
          • Our Leadership

          • Our Experts

          • Trustees

          • Voting Members

          • Global Counsellors

          • Careers

          • This Week @ TCB

    • Careers
    • This Week @ TCB
    • Sign In to myTCB®
      • US
      • EUROPE
      • ASIA
    • Insights
      • Insights
      • Explore by Center
        • Explore by Center
        • CED
          Committee for Economic Development

        • Economy, Strategy & Finance

        • Governance & Sustainability

        • Human Capital

        • Marketing & Communications

      • Explore by Content Type
        • Explore by Content Type
        • Reports

        • Upcoming Webcasts

        • On Demand Webcasts

        • Podcasts

        • Charts & Infographics

      • Trending Topics
        • Trending Topics
        • Artificial Intelligence (AI)

        • Navigating Washington

        • Geopolitics

        • US Economic Forecast

        • Sustainability

        • Future of Work

    • Events
      • Events
      • Upcoming Events
        • Upcoming Events
        • People First: Opportunity and Access

        • CHRO Summit: Navigating through a Tsunami of Change

        • Future: People Asia

        • Executive Compensation in a Disruptive World

        • CED Distinguished Leadership Awards Celebration

        • The 2025 IBI/Conference Board Health and Productivity Forum

        • Explore all Upcoming Events

      • Member-Exclusive Programs
        • Member-Exclusive Programs
        • Center Briefings

        • Experts Live

        • Roundtables

        • Working Groups

        • Expert Briefings

    • Data
      • Data
      • Consumer Confidence Index

      • Data Central

      • TCB Benchmarking

      • Employment Trends Index

      • Global Economic Outlook

      • Leading Economic Indicators

      • Help Wanted OnLine

      • Labor Markets

      • Measure of CEO Confidence

      • Human Capital Benchmarking & Data Analytics

      • CMO+CCO Meter Dashboard

    • Centers
      • Centers
      • Our Centers
        • Our Centers
        • Committee for Economic Development

        • Economy, Strategy & Finance

        • Governance & Sustainability

        • Human Capital

        • Marketing & Communications

      • Center Membership
        • Center Membership
        • What is a Center?

        • Benefits of Center Membership

        • Join a Center

    • Councils
      • Councils
      • Find a Council
        • Find a Council
        • Economy, Strategy & Finance

        • Governance & Sustainability

        • Human Capital

        • Marketing & Communications

      • Council Membership
        • Council Membership
        • What is a Council?

        • Benefits of Council Membership

        • Apply to a Council

    • Membership
      • Membership
      • Why Become a Member?
        • Why Become a Member?
        • Benefits of Membership

        • Check if Your Organization is a Member

        • Speak to a Membership Associate

      • Types of Membership
        • Types of Membership
        • Council

        • Committee for Economic Development

        • Economy, Strategy & Finance

        • Governance & Sustainability

        • Human Capital

        • Marketing & Communications

        • Insights

      • Already a Member?
        • Already a Member?
        • Sign In to myTCB®

        • Executive Communities

        • Member-Exclusive Programs

    • About Us
      • About Us
      • Who We Are
        • Who We Are
        • About Us

        • In the News

        • Press Releases

        • This Week @ TCB

        • Our History

        • Support Our Work

        • Locations

        • Contact Us

      • Our Community
        • Our Community
        • Our Leadership

        • Our Experts

        • Trustees

        • Voting Members

        • Global Counsellors

        • Careers

        • This Week @ TCB

    • Careers
    • Sign In to myTCB®
    • Download TCB Insights App
  • Insights
    Insights

    Our research and analysis have helped the world's leading companies navigate challenges and seize opportunities for over 100 years.

    Explore All Research

    Economic Indicators

    • Explore by Center
    • CED
      Committee for Economic Development
    • Economy, Strategy & Finance
    • Governance & Sustainability
    • Human Capital
    • Marketing & Communications
    • Explore by Content Type
    • Reports
    • Upcoming Webcasts
    • On Demand Webcasts
    • Podcasts
    • Charts & Infographics
    • Trending Topics
    • Artificial Intelligence (AI)
    • Navigating Washington
    • Geopolitics
    • US Economic Forecast
    • Sustainability
    • Future of Work
  • Events
    Events

    Our in-person and virtual events offer unmatched opportunities for professional development, featuring top experts and practitioners.

    See Everything Happening This Week

    Sponsor a Program

    • Upcoming Events
    • People First: Opportunity and Access

      June 12 - 13, 2025

      CHRO Summit: Navigating through a Tsunami of Change

      June 24, 2025

      Future: People Asia

      September 04 - 05, 2025

    •  
    • Executive Compensation in a Disruptive World

      September 16 - 17, 2025

      CED Distinguished Leadership Awards Celebration

      October 08, 2025

      The 2025 IBI/Conference Board Health and Productivity Forum

      October 16 - 17, 2025

    • Member-Exclusive Programs
    • Center Briefings
    • Experts Live
    • Roundtables
    • Working Groups
    • Expert Briefings
    • Explore by Type
    • Events
    • Webcasts
    • Podcasts
    • Member-Exclusive Programs
    • Center Briefings
    • Experts Live
    • Roundtables
    • Working Groups
    • Expert Briefings
  • Data
    Corporate Disclosure Data

    TCB Benchmarking

    Real-time data & analytical tools to benchmark your governance, compensation, environmental, human capital management (HCM) and social practices against US public companies.

    Economic Data

    All Data

    See current direction and trends across key indicators

    Consumer Confidence Index

    US consumers' thoughts on the economy, jobs, finances and more

    Data Central

    One-stop, member-exclusive portal for the entire suite of indicators

    Labor Markets

    Covering all aspects of labor markets, from monthly development to long-term trends

    Measure of CEO Confidence

    Examines the health of the US economy from the perspective of CEOs

     

    Recession & Growth Trackers

    See the current and future state of 16 economies.

    Global Economic Outlook

    Track the latest short-, medium-, and long-term growth outlooks for 77 economies

    Leading Economic Indicators

    Track the state of the business cycle for 12 global economies across Asia and Europe

    Help Wanted OnLine

    Track the status of job markets across the US through online job listings

    Other Featured Data

    Human Capital Analytics Tools

    Tools to understand human capital management and corporate performance

    CMO+CCO Meter Dashboard

    Tracks the impact, resources, and satisfaction of CMOs and CCOs

  • Centers
    Centers

    Centers offer access to world-class experts, research, events, and senior executive communities.

    Our Centers
    • Committee for Economic Development
    • Economy, Strategy & Finance
    • Governance & Sustainability
    • Human Capital
    • Marketing & Communications
    Center Membership
    • What Is a Center?
    • Benefits of Center Membership
    • Join a Center
  • Councils
    Councils

    Councils are invitation-only, peer-led communities of senior executives that come together to exchange knowledge, accelerate career development, and advance their function.

    Find a Council
    • Economy, Strategy & Finance
    • Governance & Sustainability
    • Human Capital
    • Marketing & Communications
    Council Membership
    • What Is a Council?
    • Benefits of Council Membership
    • Apply to a Council
  • Membership
    Membership

    Membership in The Conference Board arms your team with an arsenal of knowledge, networks, and expertise that's unmatched in scope and depth.

    • Why Become a Member?
    • Benefits of Membership
    • Check if Your Organization is a Member
    • Speak to a Membership Associate
    • Types of Membership
    • Council
    • Committee for Economic Development
    • Economy, Strategy & Finance
    • Governance & Sustainability
    • Human Capital
    • Marketing & Communications
    • Insights
    • Already a Member?
    • Sign in to myTCB®
    • Executive Communities
    • Member-Exclusive Programs
  • About Us
    About Us

    The Conference Board is the global, nonprofit think tank and business membership organization that delivers Trusted Insights for What's Ahead®. For over 100 years, our cutting-edge research, data, events and executive networks have helped the world's leading companies understand the present and shape the future.

    Learn more about Membership

    • Who We Are
    • About Us
    • In the News
    • Press Releases
    • Our History
    • Support Our Work
    • Locations
    • Contact Us
    • Our Community
    • Our Leadership
    • Our Experts
    • Trustees
    • Voting Members
    • Careers
    • This Week @ TCB
Check if You're a Member
Create Account
Forgot Your Password?

Members of The Conference Board get exclusive access to the full range of products and services that deliver Trusted Insights for What's Ahead ® including webcasts, publications, data and analysis, plus discounts to conferences and events.

Explainer: Medicaid

16 December 2024 / Article

Download Article
  • Email
  • Linkedin
  • Facebook
  • Twitter
  • Copy Link

Key Insights

Medicaid, a joint Federal-State program, provides health insurance coverage for more than 20 percent of Americans and is particularly important for certain populations, including low-income families, children, pregnant women, the elderly, and individuals with disabilities. Medicaid is jointly operated by states and the Federal government and comprises a large share of both state budgets and overall Federal health care expenditures. As program costs grow despite projected declines in enrollment over the next decade, Congress should consider opportunities for reform to put Medicaid on a sustainable financial trajectory and preserve vital benefits for tens of millions of Americans.

This Explainer provides a description of Medicaid expenditures and program financing; a brief history of the program; the role of states in Medicaid; Medicaid eligibility, benefits, and other program components; Medicaid’s impact; and opportunities for reform outlined by the Congressional Budget Office (CBO) to set Medicaid on sounder financial footing.

  • Federal spending on Medicaid was $607 billion in 2024 and is expected to rise to $933 billion by 2034, even with a projected decrease in the number of Medicaid beneficiaries.
  • Two separate factors, rising health care costs in the US and policy changes that have increased coverage and access to Medicaid services, have driven this increase in Medicaid expenditures, which contributes to annual deficits and puts pressure on the Federal budget.
  • Medicaid was established in 1965, and eligibility was initially tied to receipt of Federal cash assistance for children, low-income families, the elderly, and individuals with disabilities. Reforms in the 1990s severed the link with cash welfare payments and legislation in the 2010s expanded coverage to more low-income adults.
  • States have flexibility in designing their Medicaid programs within broad Federal guidelines, leading to wide variation in eligibility, services covered, and the delivery system used for Medicaid benefits.
  • In general, Medicaid covers children, pregnant women, adults earning income below a certain level, individuals with disabilities, and individuals 65 years of age and older. Medicaid also has financial eligibility criteria that beneficiaries must meet, and Medicaid eligibility is typically  redetermined on an annual basis.
  • Medicaid offers comprehensive health care coverage and is the largest payor for long-term services and supports (frequently for the elderly), births, and behavioral health services in the US. State Medicaid programs have increasingly used managed care to deliver these health care benefits, and states have flexibility to develop benefit packages for targeted populations, including those with complex or chronic health care needs.
  • Given Medicaid’s financial trajectory, policymakers should consider opportunities for reform, including caps on Federal Medicaid spending, limits on the use of state taxes on health care providers, and adjustments to Federal Medicaid matching rates. Innovative strategies such as value-based care and an emphasis on primary care, preventive care, and coordination of benefits can also assist in improving Medicaid’s fiscal outlook.

Key Insights

Medicaid, a joint Federal-State program, provides health insurance coverage for more than 20 percent of Americans and is particularly important for certain populations, including low-income families, children, pregnant women, the elderly, and individuals with disabilities. Medicaid is jointly operated by states and the Federal government and comprises a large share of both state budgets and overall Federal health care expenditures. As program costs grow despite projected declines in enrollment over the next decade, Congress should consider opportunities for reform to put Medicaid on a sustainable financial trajectory and preserve vital benefits for tens of millions of Americans.

This Explainer provides a description of Medicaid expenditures and program financing; a brief history of the program; the role of states in Medicaid; Medicaid eligibility, benefits, and other program components; Medicaid’s impact; and opportunities for reform outlined by the Congressional Budget Office (CBO) to set Medicaid on sounder financial footing.

  • Federal spending on Medicaid was $607 billion in 2024 and is expected to rise to $933 billion by 2034, even with a projected decrease in the number of Medicaid beneficiaries.
  • Two separate factors, rising health care costs in the US and policy changes that have increased coverage and access to Medicaid services, have driven this increase in Medicaid expenditures, which contributes to annual deficits and puts pressure on the Federal budget.
  • Medicaid was established in 1965, and eligibility was initially tied to receipt of Federal cash assistance for children, low-income families, the elderly, and individuals with disabilities. Reforms in the 1990s severed the link with cash welfare payments and legislation in the 2010s expanded coverage to more low-income adults.
  • States have flexibility in designing their Medicaid programs within broad Federal guidelines, leading to wide variation in eligibility, services covered, and the delivery system used for Medicaid benefits.
  • In general, Medicaid covers children, pregnant women, adults earning income below a certain level, individuals with disabilities, and individuals 65 years of age and older. Medicaid also has financial eligibility criteria that beneficiaries must meet, and Medicaid eligibility is typically  redetermined on an annual basis.
  • Medicaid offers comprehensive health care coverage and is the largest payor for long-term services and supports (frequently for the elderly), births, and behavioral health services in the US. State Medicaid programs have increasingly used managed care to deliver these health care benefits, and states have flexibility to develop benefit packages for targeted populations, including those with complex or chronic health care needs.
  • Given Medicaid’s financial trajectory, policymakers should consider opportunities for reform, including caps on Federal Medicaid spending, limits on the use of state taxes on health care providers, and adjustments to Federal Medicaid matching rates. Innovative strategies such as value-based care and an emphasis on primary care, preventive care, and coordination of benefits can also assist in improving Medicaid’s fiscal outlook.

Authors

David K. Young

David K. Young David K. Young

President
Committee for Economic Development, the public policy center of The Conference Board (CED)

Read Bio

John Gardner

John Gardner John Gardner

Vice President, Public Policy
Committee for Economic Development, the public policy center of The Conference Board (CED)

Read Bio

Luis Bourgeois

Luis Bourgeois Luis Bourgeois

Researcher and Writer, Fiscal Policy
Committee for Economic Development, the public policy center of The Conference Board (CED)

Read Bio

Great News!

You already have an account with The Conference Board.

Please try to login in with your email or click here if you have forgotten your password.

  • Download
  • Download Article

Other Related Resources

Additional Resources

Federal Budget Tracker

Federal Budget Tracker

May 19, 2025

Article

Next Steps in Reconciliation: House Committee Markups

Next Steps in Reconciliation: House Committee Markups

May 16, 2025

Newsletters & Alerts

Policy Alert: Stablecoin Bill Fails Key Senate Vote

Policy Alert: Stablecoin Bill Fails Key Senate Vote

May 15, 2025

Podcasts

What's on the White House Agenda for the Next 100 Days?

What's on the White House Agenda for the Next 100 Days?

May 12, 2025

Newsletters & Alerts

Policy Alert: UK and US Reach Agreement for Trade Deal

Policy Alert: UK and US Reach Agreement for Trade Deal

May 08, 2025

Newsletters & Alerts

Policy Alert: Executive Order on Promoting US Pharmaceutical Manufacturing

Policy Alert: Executive Order on Promoting US Pharmaceutical Manufacturing

May 07, 2025

Newsletters & Alerts

Policy Alert: Administration Eliminates Federal Funding for NPR and PBS

Policy Alert: Administration Eliminates Federal Funding for NPR and PBS

May 07, 2025

Article

Reauthorization of the Defense Production Act

Reauthorization of the Defense Production Act

May 02, 2025

Article

The Next One Hundred Days – and Beyond: What Lies Ahead

The Next One Hundred Days – and Beyond: What Lies Ahead

April 29, 2025

Article

Congress Agrees to Budget Resolution to Unlock Reconciliation

Congress Agrees to Budget Resolution to Unlock Reconciliation

April 16, 2025

Article

CBO View: Tax Bill, Debt Ceiling, and Long-Term Projections

CBO View: Tax Bill, Debt Ceiling, and Long-Term Projections

April 03, 2025

Article

The Administration’s View on Impoundment

The Administration’s View on Impoundment

March 27, 2025

Article

The US Crypto Reserve and Other Developments

The US Crypto Reserve and Other Developments

March 14, 2025

Article

Fiscal Policy in the President’s Speech to Congress

Fiscal Policy in the President’s Speech to Congress

March 06, 2025

Article

Is a US Sovereign Wealth Fund an Appropriate Use of Surpluses?

Is a US Sovereign Wealth Fund an Appropriate Use of Surpluses?

February 28, 2025

Chart

Reforming the Broken Federal Budget Process

Reforming the Broken Federal Budget Process

February 24, 2025

Report

Reforming the Broken Federal Budget Process

Reforming the Broken Federal Budget Process

February 24, 2025

Article

House and Senate Budget Resolutions: The Challenge Ahead

House and Senate Budget Resolutions: The Challenge Ahead

February 20, 2025

Newsletters & Alerts

CFPB Operations Uncertain as Administration Issues “Stop Work” Order

CFPB Operations Uncertain as Administration Issues “Stop Work” Order

February 14, 2025

Newsletters & Alerts

Policy Alert: Sovereign Wealth Fund Executive Order

Policy Alert: Sovereign Wealth Fund Executive Order

February 04, 2025

Article

Changing US Disaster Relief Funding?

Changing US Disaster Relief Funding?

January 30, 2025

Additional Resources


Federal Budget Tracker

Federal Budget Tracker

May 19, 2025

Article


Next Steps in Reconciliation: House Committee Markups

Next Steps in Reconciliation: House Committee Markups

May 16, 2025

Newsletters & Alerts


Policy Alert: Stablecoin Bill Fails Key Senate Vote

Policy Alert: Stablecoin Bill Fails Key Senate Vote

May 15, 2025

On Demand Webcasts

Financial Services: What Next from the New Administration?

Financial Services: What Next from the New Administration?

March 20, 2025

On Demand Webcasts

Reforming the Broken Federal Budget Process

Reforming the Broken Federal Budget Process

February 20, 2025

On Demand Webcasts


Financial Services: What Next from the New Administration?

Financial Services: What Next from the New Administration?

March 20, 2025

On Demand Webcasts


Reforming the Broken Federal Budget Process

Reforming the Broken Federal Budget Process

February 20, 2025

Conference Board Sample Web Chat
chatbot-Icon TCB Logo
chatbot-Icon
Navigating Washington - Sign up to receive the latest business insights related to executive orders, new laws, and changing regulations.
ABOUT US
  • Who We Are
  • Annual Report
  • Our History
  • Our Experts
  • Our Leadership
  • In the News
  • Press Releases
MEMBERSHIP
  • Become a Member
  • Sign In to myTCB®
  • Access Experts
  • Member-Only Events
  • Data & Benchmarking
  • Manage Account
EXPLORE
  • Centers
  • Councils
  • Latest Research
  • Events
  • Webcasts
  • Podcasts
  • This Week @ TCB
CONTACT US
  • Americas
    +1 212 759 0900
    customer.service@tcb.org
  • Europe/Africa/Middle East
    +32 2 675 5405
    brussels@tcb.org
  • Asia
    Hong Kong | +852 2804 1000
    Singapore | +65 8298 3403
    service.ap@tcb.org
CAREERS
  • See Open Positions
Terms Of Use | Privacy Policy | Event Code of Conduct | Trademarks
© 2025 The Conference Board Inc. All rights reserved. The Conference Board and torch logo are registered trademarks of The Conference Board.
The use of all The Conference Board data and materials is subject to the Terms of Use. Reprint requests are reviewed individually and may be subject to additional fees.The Conference Board reserves the right to deny any request.
Terms of Use | Privacy Policy | Event Code of Conduct | Trademarks
© 2025 The Conference Board Inc. All rights reserved. The Conference Board and torch logo are registered trademarks of The Conference Board.
The use of all data from The Conference Board data and materials is subject to the Terms of Use. Reprint requests are reviewed individually and may be subject to additional fees.The Conference Board reserves the right to deny any request.

Thank you for signing up. You will now receive CEO Insights for What's Ahead every Wednesday morning. You can unsubscribe at any time or manage your preferences to receive more content from The Conference Board.

Announcing The Conference Board AI Virtual Conference Series

Explore the Impact of AI on Your Business

Members receive complimentary registration - Learn more >>