Medicaid represents $1 out of every $6 spent on health care in the US and is the major source of financing for states to provide coverage to meet the health and long-term care needs of their low-income residents. This brief examines the following key Medicaid financing questions: How does Medicaid financing work?; How much does Medicaid cost and how are funds spent?; What is the role of Medicaid in federal and state budgets?; What are the implications of the pandemic on Medicaid and state budgets?
