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The Henry J. Kaiser Family Foundation

Medicaid Spending Growth in the Great Recession and Its Aftermath, FY 2007-2012

This report presents data on changes in Medicaid’s enrollment and spending between federal fiscal year 2007 and federal fiscal year 2012, a period which includes the worst economic downturn in the United States since the Great Depression. The paper also examines what factors drove Medicaid spending over the period, and concludes that overall spending growth from 2007 to 2012 was driven largely by the enrollment growth that resulted from many people losing jobs and income during the recession. However, on a per enrollee basis, Medicaid spending has grown more slowly than other sectors of the health system.

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